Chip shortage is leading new facilities coming up globally. Now Vedanta and Foxconn have joined together to set up one in India.
Key points to note –
- A new JV has been set up where Vedanta will hold majority and Hon Hai Technology Group (also known as Foxconn) will hold minority.
- Quantum of investment, entity structure, focus areas, location and timelines as for now are not disclosed.
- This is the 1st JV after the Indian government had announced Rs 76,000 crore PLI scheme for semiconductors and display board in December 2021, to be spent over the next 5-6 years.
- Immediately after the PLI announcement, Vedanta Group in January 2022 had announced it’s intent to commit $15 bn towards this initiative.
- The Hon Hai Technology Group is a multi-billion Taiwanese electronics contract manufacturer, known for making Apple’s iPhones and other popular products. It ranks first globally in the field of electronic manufacturing services (EMS), with a market share exceeding 40 per cent.
This JV seems exciting given the parties involved. Hope that it proceeds ahead in a timely manner and we get to know more details asap.