Foxconn-Vedanta JV Inks MOU with Gujarat, India

On September 13th, in a significant development reported by Reuters, a strategic memorandum of understanding was inked between the Indian state of Gujarat and Vedanta-Foxconn, a prominent multinational conglomerate. This agreement pertains to the establishment of cutting-edge chip and display manufacturing facilities. The Vedanta-Foxconn joint venture is poised to make an impressive total investment of 1.54 trillion Indian rupees (approximately $19.5 billion) in the state.

The prospective factory locations are earmarked in close proximity to Ahmedabad, the primary commercial hub in the state of Gujarat. Notably, both entities affirm that the Vedanta-Foxconn initiative aims to generate over 100,000 employment opportunities within the region.

Vedanta has officially declared its intention to assume full ownership of the proposed display manufacturing facility. In the realm of chip production, Vedanta will secure a 60% stake in the joint venture, with the remaining 40% vested in Foxconn, acting as the technological collaborator. It's noteworthy that Vedanta, traditionally focused on mining and the production of aluminum and copper, is venturing into semiconductor manufacturing through this collaboration.

In February, Foxconn had previously announced the signing of a memorandum of cooperation with Vedanta, outlining their joint commitment to establish a significant presence in semiconductor manufacturing within India. Subsequent reports in July highlighted their collaborative efforts in setting up manufacturing facilities in Talegaon, encompassing semiconductor, panel production, packaging, testing, and other related lines of manufacturing.