Vedanta and Foxconn to Manufacture Semiconductors Together

0
443

The Vedanata Group, in December 2021, had committed Rs 60,000 crore in the sector. Akarsh Hebbar, managing director of AvanStrate, had noted that the company was in the last stages of negotiations with various state governments for setting up a factory

Vedanta and Hon Hai Technology Group (Foxconn) have signed an MOU to form a joint venture company. This company will be manufacturing semiconductors in India. The former, as per the MoU, will hold majority of the stocks in the company.

Vedanta Chairman has been nominated to be the Chairman of the joint venture company. The company is already engaged in talks with various state governments to finalize the location of the company. The move follows the recent announcement by the government of India to offer a semiconductor and display manufacturing program with an outlay of Rs 76,000 Cr.

The Vedanata Group, in December 2021, had committed Rs 60,000 crore in the sector. Akarsh Hebbar, managing director of AvanStrate, had noted that the company was in the last stages of negotiations with various state governments for setting up a factory which, as per Hebbar, would require between 250 acres and 400 acres.

“Overall investments into the project will range between $6 billion (Rs 45,000 crore) and $8 billion (Rs 60,000 crore) in the first two phases, following which we will carry out further assessment of the market for expansion,” he had said.

The Vedanta Group’s $10 billion projects to set up India’s first plant to make flat panel displays was scrapped in 2019 after failing to obtain subsidies under the government’s Modified Special Incentive Package Scheme (M-SIPS). The Maharashtra government had reserved 200 acres for the project and another 150 acres was earmarked for ecosystem partners near Nagpur.

The group is now reportedly eyeing Haryana, Gujarat, Maharashtra, Telangana, Tamil Nadu and Karnataka as one of the potential states for setting up shop. Foxconn, on the other hand, is known as the world’s largest contract manufacturer. It is also gearing up to enter the electric vehicle manufacturing space.

LEAVE A REPLY

Please enter your comment!
Please enter your name here