Foxconn-Vedanta Joint Venture in Gujarat

Foxconn have invested in India and working in collaboration with Vedanta group. Vedanta Group is entering the semiconductor  and display business with this joint venture. Vedanta Chairman Mr. Anil Agarwal said,  “Foxconn is our technical partner. We may not take equity partner for the fab" . Vedanta is keen to get incentives from GOI and was also in talks with several Indian states on the unit's location.  The first phase of Vedanta's project would entail an investment of  2 billion Dollar.  India estimates its semiconductor market will reach 63 billion dollar by 2026, compared with 15 billion dollar in 2020. "You have to create another Taiwan in India," as Mr. Agarwal said, noting that India will have to focus on bringing the entire semiconductor ecosystem locally for it to be a global .

Foxconn wants to set up a skill development center in India similar to the  facility name  Hon Hai Research Institute in Taiwan. Foxconn is keen to buildup  an ecosystem to support their planned business expansion here in India. This research center is basically the vocational centers and the industry-academic correlation hub. This  idea was discussed by Foxconn top executives in presence of state officials during Foxconn’s Chairman’s India visit. They are basically eyeing to expand its base in India in for EVs, semiconductors and electronics manufacturing and hence the need to develop skilled workforce for all the domains. In Taiwan, Foxconn’s home country, the Hon Hai Research Institute was established in 2020. The institute has five research centers for artificial intelligence, semiconductors, next-generation communications, information security and quantum computing. So  we can expect a similar scenario in India as well.Vedanta and Foxconn finalized the location of their manufacturing facility. They will invest over ₹1.54 lakh crore to set up a display fabrication and semiconductor manufacturing facility in Gujarat. The proposed facility will come up over the next two years,  according to the deal signed recently. The mining giant will hold 60% stake in the joint venture while the Taiwanese chip maker will own the balance 40%. The JV became the fourth to announce plans under the  initial ₹76,000-crore PLI  scheme to foster chip-making capabilities in the country. Terming of the MoU as "an important step (in) accelerating India's semiconductor manufacturing ambitions," PM Modi said in a Twitter post that " the investment of ₹1.54 lakh crore will create a significant impact to boost the economy and jobs. This will also create a huge ecosystem for ancillary industries and help our MSMEs."

Foxconn chairman Young Liu  was on a visit to India as its India arm Bharat FIH proceeded with plans to go public this year. During his visit Mr. Liu has met Prime Minister Narendra Modi, minister of communications, electronics and information technology Ashwini Vaishnaw and minister of state for electronics and information technology Rajeev Chandrasekhar. He has also met Akarsh Hebbar, Vedanta Group’s global managing director of display and semiconductor business as part of a proposed partnership between Foxconn Group and Vedanta Group. 

 

 

Courtesy:  Image by Gerd Altmann,OpenClipart-Vectors from Pixabay ; Image by Michael Schwarzenberger from Pixabay ;Mikhail Nilov from pexels