Metals and mining conglomerate Vedanta Group has signed an memorandum of understanding with Taiwan’s Hon Hai Technology Group (Foxconn) to form a joint venture that will manufacture semiconductors in India.
Hon Hai, which trades as Foxconn, is the world’s largest contract manufacturing of electronic equipment. It is best known as the contractor that manufactures iPhones for Apple. The deal will support Indian Prime Minister Narendra Modi’s vision for semiconductor manufacturing in India (see India details wafer fab subsidy scheme favoring 28nm).
According to the MOU, Vedanta will hold the majority of the equity in the joint venture, while Foxconn will be the minority shareholder. Vedanta chairman Anil Agarwal will be chairman of the joint-venture company.
Foxconn will invest US$118.7 million for a 40 percent stake in the company, according to a Reuters report.
The companies did not discuss a name for the joint-venture, what sort of chips it will produce and at what scale or where it will be located. However, Foxconn said that discussions are being held with “a few” State governments to finalize the locat ion of the plant.
The JV is likely to operate well behind the leading-edge of semiconductor technology making power devices or sensors, possibly in support of Foxconn’s electric vehicle aspirations.
Vedanta Group is a global diversified group of companies with presence in metals, mining, oil & gas, power, telecom and glass. Vedanta Group has presence in electronics and technology business through group companies, Avanstrate Inc. and Sterlite Technologies.
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