Foxconn, an iPhone assembler company, stated on Monday that it has partnered with Indian conglomerate Vedanta Ltd to produce chips or semiconductors in the South Asian country. With this, the electronic giant is looking to diversify its business amid the global chip shortage.
Vedanta is one of the world’s leading diversified natural resources companies, mainly focusing on producing metal, mining, oil & gas, power, telecom, and glass. Foxconn is another world-leading electronic manufacturer company and a major Apple supplier. The company has expanded its supplies to Electronic Vehicles (EVs) and semiconductors in recent years.
In an announcement, Foxconn said that the company has signed the memorandum of understanding with Vedanta group to produce semiconductors in India, calling it “a significant boost to domestic manufacturing electronics in India.”
This first-of-its-kind joint venture between two companies will significantly change India’s economy. As expected, it will support Prime Minister Narendra Modi’s vision to create an ecosystem for semiconductor manufacturing in India.
According to the MOU, Vedanta will hold the majority of the equity in the JV. Foxconn is expecting to invest $118.7 million to set up a joint venture company in India and will be the minority shareholder, as per the reports.
The Taiwan company, Foxconn, on behalf of recent years, considered semiconductors among its core business. The company also partnered with Yageo Corp to make semiconductor chips, following a global chip shortage that has rattled producers of goods from cars to electronics.
The collaboration between Vedanta and Foxconn will follow the Indian Government’s recent policy for Electronics Manufacturing & PLI scheme for incentivizing organizations to contribute towards the development. This will be the first JV in electronics manufacturing in history.
There are lots of expectations with this joint venture as Foxconn has become the major player in the global EV market, and it would make it possible to produce chips for EV.