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.
The facility is announced to be set up In Gujarat
To me the project looks too large. I hope it gets executed as stated.
As per newspaper reports, the government is posed to deny crucial funding (incentives) for the project.
The venture’s application for government assistance, seeking billions in funding, has reportedly failed to meet the government’s specified criteria.
Additionally, the project is still in need of a technology partner and a manufacturing-grade technology license to proceed with the construction of 28nm chips.