Vedanta partners with Foxconn to produce semiconductors in India
Technology

Vedanta partners with Foxconn to produce semiconductors in India

Vedanta Limited, a subsidiary of Vedanta Resources, has partnered with Hon Hai Technology Group trading as Foxconn Technology Group to form a joint venture (JV) to manufacture semiconductors in India.

After the performance-linked incentive (PLI) scheme, this is the first JV in the electronics manufacturing area.

In December 2021, the Government of India cleared a PLI scheme for semiconductor and display board production in the country, targeting an investment worth Rs 76,000 crore within the next five to six years.

To draw large investments for manufacturing facilities amid the global pandemic, India Semiconductor Mission (ISM) was introduced.

Currently, discussions are going on with a few state governments to decide the final plant location. However, the company has not revealed the investment amount, estimated production capacity, and project's location.

According to the memorandum of understanding (MoU) signed between the two companies, Vedanta would hold the majority in the JV while Hon Hai would be the minority shareholder. Anil Agarwal, the owner of Vedanta, would be the chairman of the JV company.

Recently, a subsidiary of Foxconn Technology and FIH Mobiles, Bharat FIH Ltd, has filed its draft papers for a Rs 5,000-crore initial public offering in India.

In December 2021, Foxconn's nearly 2,000 employees at an iPhone contract manufacturing unit in Sriperumbudur blocked Chennai-Bengaluru Highway for over 12 hours, mentioning alleged food poisoning in one of its hostels directing to the hospitalization of 159 workers.

Due to this, the plant was put on probation by Apple Inc. However, the production restarted by January-mid.

Foxconn informed that it would revamp the local management team and operations.

Hon Hai said in December, by spending $350 million, the firm increased its stake in its India subsidiary.

In January, the Vedanta Group shared its plan to invest $15 billion in making displays and semiconductor chips in India in the coming five years.

In December 2017, it acquired AvanStrate, a Japanese glass substrate manufacturer from the Carlyle Group.

Hon Hai, including its subsidiaries, ranks first worldwide in the electronic manufacturing services (EMS) field, with a market share exceeding 40%.

Image Source

Also read: Vedanta acquires Goa-based nickel and cobalt manufacturer Nicomet

Vedanta Limited, a subsidiary of Vedanta Resources, has partnered with Hon Hai Technology Group trading as Foxconn Technology Group to form a joint venture (JV) to manufacture semiconductors in India. After the performance-linked incentive (PLI) scheme, this is the first JV in the electronics manufacturing area. In December 2021, the Government of India cleared a PLI scheme for semiconductor and display board production in the country, targeting an investment worth Rs 76,000 crore within the next five to six years. To draw large investments for manufacturing facilities amid the global pandemic, India Semiconductor Mission (ISM) was introduced. Currently, discussions are going on with a few state governments to decide the final plant location. However, the company has not revealed the investment amount, estimated production capacity, and project's location. According to the memorandum of understanding (MoU) signed between the two companies, Vedanta would hold the majority in the JV while Hon Hai would be the minority shareholder. Anil Agarwal, the owner of Vedanta, would be the chairman of the JV company. Recently, a subsidiary of Foxconn Technology and FIH Mobiles, Bharat FIH Ltd, has filed its draft papers for a Rs 5,000-crore initial public offering in India. In December 2021, Foxconn's nearly 2,000 employees at an iPhone contract manufacturing unit in Sriperumbudur blocked Chennai-Bengaluru Highway for over 12 hours, mentioning alleged food poisoning in one of its hostels directing to the hospitalization of 159 workers. Due to this, the plant was put on probation by Apple Inc. However, the production restarted by January-mid. Foxconn informed that it would revamp the local management team and operations. Hon Hai said in December, by spending $350 million, the firm increased its stake in its India subsidiary. In January, the Vedanta Group shared its plan to invest $15 billion in making displays and semiconductor chips in India in the coming five years. In December 2017, it acquired AvanStrate, a Japanese glass substrate manufacturer from the Carlyle Group. Hon Hai, including its subsidiaries, ranks first worldwide in the electronic manufacturing services (EMS) field, with a market share exceeding 40%. Image Source Also read: Vedanta acquires Goa-based nickel and cobalt manufacturer Nicomet

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