iPhone maker Foxconn to make semiconductors in India with Vedanta

New Delhi: Taiwan`s Foxconn said on Monday it had partnered with Indian conglomerate Vedanta Ltd to make semiconductors in the South Asian country, as the electronics giant looks to diversify its business amid a global chip shortage.

Foxconn, the world`s largest contract electronics manufacturer and a major Apple supplier, has expanded into areas including electric vehicles (EVs) and semiconductors in recent years.

In a statement, Foxconn said it had signed a memorandum of understanding with oil-to-metals group Vedanta to make semiconductors, calling it “a significant boost to domestic manufacturing of electronics in India.”

Foxconn said it would invest $118.7 million to set up a joint venture company with Vedanta, which would be the majority shareholder of the new venture. Foxconn would hold 40% of the venture`s shares, it added.

“This first-of-its-kind joint venture between the two companies will support Indian Prime Minister Narendra Modi`s vision to create an ecosystem for semiconductor manufacturing in India,” the statement said.

The Taiwan company has in recent years counted semiconductors among its core businesses and last year formed a partnership with Yageo Corp to make semiconductor chips, following a global chip shortage that has rattled producers of goods from cars to electronics. Also Read: Here’s why people can trade an arm for Apple iPhone, explains billionaire

The company has also in recent years announced plans to become a major player in the global EV market, and has said it was in talks with “related foundries” on possible collaboration to make chips for EVs. Also Read: Federal Bank’s subsidiary FedFina files IPO papers with Sebi

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