Vedanta has collaborated with Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, to produce semiconductors in India, as part of a global chip shortage and to take advantage of the chip manufacturing support of the Indian government.
Vedanta will own a controlling stake in a new Foxconn-Vedanta joint venture. According to a joint statement released by the two firms on Monday, the company would be led by Vedanta chairman Anil Agarwal. The alliance will provide domestic electronics production with a big boost. A global shortage of chips has hampered the manufacture of everything from autos to consumer devices.
‘This first-of-its-kind joint venture between the two companies will support Indian Prime Minister Narendra Modi’s vision to create an ecosystem for semiconductor manufacturing in India’, according to the statement.
The site of the production plant is now being discussed with a few state governments. Avanstrate Inc. and Sterlite Technologies, two Vedanta group firms, have a foothold in the electronics and technology market.
As per reports, the Vedanta group wants to invest up to $15 billion in Avanstrate to manufacture displays and semiconductor chips in India over the next 5-10 years. The investment will be undertaken in stages and will include a combined display production facility as well as a separate semiconductor factory.