Taiwan’s Foxconn on Monday said it has partnered with Indian conglomerate Vedanta Ltd to manufacture semiconductors in the South Asian country, as the electronics giant seeks to diversify its business amid global chip shortages.
Foxconn, the world’s largest contract electronics manufacturer and a major Apple supplier, has expanded in recent years into areas including electric vehicles (EVs) and semiconductors.
In a statement, Foxconn said it had signed a memorandum of understanding with oil-to-metals conglomerate Vedanta to manufacture semiconductors, calling it “a significant boost for domestic manufacturing of electronics in India”.
Foxconn said it will invest $118.7 million to set up a joint venture company with Vedanta, which will be the majority shareholder of the new venture. Foxconn will hold 40% shares of the venture.
“This first-of-its-kind joint venture between the two companies will support Indian Prime Minister Narendra Modi’s vision of creating an ecosystem for semiconductor manufacturing in India,” the statement said.
The Taiwanese company has counted semiconductors as one of its core businesses in recent years and last year partnered with Yageo Corp to make semiconductor chips, following a global chip shortage that has forced producers of goods from cars to electronics. has bothered.
The company has announced plans to become a major player in the global EV market in recent years, and said it was in talks with “concerned foundries” on a possible collaboration to manufacture chips for EVs.