Taiwanese multinational electronics contract manufacturer Foxconn's Chairperson Young Liu on Thursday met Vedanta Group’s Global Managing Director of Display and Semiconductor Business, Akarsh Hebbar to discuss the next steps for their proposed partnership to manufacture semiconductor chips in India. To recall, Foxconn and Vedanta had signed an MoU earlier in February to form a joint venture (JV) company in the country; Vedanta will hold 60 per cent of the equity in the JV while Foxconn will own 40 per cent.
Vedanta is mulling to invest around $15 billion in a phased manner over the next 5-10 years to build displays and semiconductor chips in India. The JV will look at setting up a semiconductor manufacturing plant in the next two years. The joint venture between the two companies is in line with Prime Minister Narendra Modi’s vision of creating an ecosystem for electronics manufacturing in the country.
This is the first joint venture in the electronics manufacturing space after the announcement of the central government's PLI scheme for semiconductors and display manufacturing.
The Vedanta-Foxconn partnership will in the coming years arrest the electronic component import bill of around $100 billion. Vedanta and Foxconn are in discussion with some state governments, to finalise the location of the semiconductor unit soon.
Earlier in February, Vedanta Group and Hon Hai Technology Group, popularly known as Foxconn had signed an MoU to form a JV firm to manufacture semiconductors in India. “The collaboration between Vedanta and Foxconn follows the India government’s recent policy announcement for Electronics Manufacturing & PLI scheme for incentivising organisations to contribute towards development of this sector,” a company statement had said.