Foxconn, the world’s largest electronics manufacturing company and Vedanta, one of India’s leading conglomerate, has signed an MoU to form a joint venture that will focus on manufacturing semiconductors in India. Anil Agarwal, Chairman of Vedanta Limited will be the Chairman of the joint venture company.
The targeted project plans to invest in manufacturing semiconductors, boosting the domestic manufacturing of electronics in India. The companies are in talks with various state governments to finalise the location of the plant.
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Vedanta will hold the majority of the equity in the joint venture.
The joint venture is the first in the electronics manufacturing space after the Government of India announced a production linked incentive scheme for semiconductor and display board production in the country.
The Union Cabinet announced a production linked incentive scheme and committed Rs 76,000 crore for semiconductor production in the next 5-6 years. The programme aims to incentivise companies/consortiums focused on Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs, Semiconductor Packaging (ATMP / OSAT), Semiconductor Design.