Anil Agarwal’s Vedanta Group of India and Taiwan’s Global manufacturing giant Foxconn have entered into a Joint Venture (JV) to setup a semiconductor manufacturing company at an investment of $20 billion, in the state of Gujrat. The joint venture partners have signed memorandum of understanding (MOU) with Govt. of Gujrat to build a semiconductor manufacturing factory near Ahmedabad.
In this JV Vedanta will hold 60 percent of equity and Foxconn will hold the balance 40 percent. Technical expertise will be provided by Foxconn in the venture and the oil-to-metals major Vedanta will be financing the project inline with its plan to diversify into chip manufacturing.
Chief Minister of Gujarat Bhupendrabhai Patel at a press event, told the reporters that state government of Gujarat will offer every possible help on this project. All departments of the government will support this project, including subsidies on capital expenditure and electricity requirements.
As per Mr. Ashwini Vaishnaw, India’s Electronics and IT Minister “Electronics manufacturing in India has already generated around 25 lakh jobs. Modi ji has now given us the target to expand this 25 lakh employment record to 1 crore jobs. It means we need to take electronics manufacturing in the country from $80 billion to $300 billion, Spectrum and silicon are the two prime raw materials of today’s digital world… The world will watch India rapidly emerge as a very strong semiconductor player.”
“Foxconn applauds the efforts made by the Government of Gujarat, home of Prime Minister Narendra Modi, to attract semiconductor development and upgrade government efficiency. Located in the western part of India, Gujarat has been recognized for its industrial development, green energy, and smart cities. The improving infrastructure and the government’s active and strong support increases confidence in setting up a semiconductor factory. We look forward to working with our partners and the Gujarat leadership,” Foxconn said in a media statement.