Taiwan's Foxconn, Vedanta group to form joint venture to manufacture semiconductors in India

New Delhi, Feb 15: In a significant development for the performance-linked incentive (PLI) scheme, Anil Agarwal’s Vedanta group and Hon Hai Technology Group ("Foxconn”) have entered into a pact to form a joint venture company that will manufacture semiconductors in India. This is the first JV in the electronics manufacturing space after the PLI policy, a joint statement issued by the companies said.

 

According to the MOU signed between the two companies, Vedanta will hold the majority of the equity in the JV, while Foxconn will be the minority shareholder. Vedanta Chairman Anil Agarwal will be the Chairman of the joint venture company.

 

 

It should be noted that in December 2021, the central government had approved a PLI scheme for semiconductor and display board production in the country targeting an investment of Rs 76,000 crore over the next five to six years. India Semiconductor Mission (ISM) was also announced recently with the aim to attract large investments for manufacturing facilities in the midst of a global chip crisis.

 

The Vedanta Group had in January shared its intent to invest $15 billion for making displays and semiconductor chips in India over the coming five years. It had acquired AvanStrate, a Japanese glass substrate manufacturer in December 2017 from the Carlyle Group.

 

 

The Hon Hai Technology Group is a multi-billion Taiwanese electronics contract manufacturer famed for making Apple’s iPhones and other popular products. In December, the company said it had raised stake in its India subsidiary by spending $350 million, terming the new investment as part of its long-term development in India.

 

Hon Hai, along with its subsidiaries including Foxconn, ranks first globally in the field of electronic manufacturing services (EMS), with a market share exceeding 40 per cent.

 

 

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