Hon Hai agrees joint venture with Vedanta in South Asia chip supply deal

  • By Chen Cheng-hui / Staff Reporter

Hon Hai Precision Industry Co (鴻海精密), key iPhone assembler, said yesterday it had signed a memorandum of understanding with Indian billionaire Anil Agarwal’s Vedanta Ltd to establish a joint venture that aims to manufacture semiconductors in the South Asian nation.

The investment would be seen as a victory for Indian Prime Minister Narendra Modi’s government, which aims to create an ecosystem for semiconductor manufacturing in India.

The planned joint venture could give a significant boost to domestic electronics manufacturing in India, Hon Hai said in a statement.

Photo: Fang Wei-jie, Taipei Times

Discussions with a few Indian state governments are underway to try to determine the location of the plant, he said.

Hon Hai – the world’s largest electronics maker, known globally as Foxconn Technology Group (富士康科技集團) – said Vedanta, a major oil, gas and metallurgy company, will hold a controlling stake in the joint venture, while the Taiwanese company be a minority shareholder.

Agarwal is to chair the new venture, which Hon Hai described as the first of its kind between the two companies.

The deal came after Modi’s government recently announced the Production-Linked Incentives Scheme for Large Scale Electronics Manufacturing, which was created to design financial incentives to boost domestic manufacturing in the sector, and it is on track to become the first joint venture in electronics manufacturing since the program began, Hon Hai said.

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