Foxconn Accelerates Semiconductor Investment... Will Manufacture Semiconductors in India

Indian conglomerate Vedanta to establish joint venture with 142.5 billion KRW investment

[Photo by Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] Amid the ongoing semiconductor supply shortage, Foxconn, which is diversifying its business, is accelerating the expansion of its semiconductor operations.

On the 14th (local time), major foreign media reported that Foxconn signed an agreement with India's major conglomerate Vedanta Group to start semiconductor production in India.

Famous as the contract manufacturer for Apple iPhones, Foxconn is the world's largest electronics contract manufacturer and has recently been actively investing in the semiconductor sector as part of its business diversification. Vedanta is a giant Indian conglomerate engaged in various industries such as mining, oil, and power.

Foxconn plans to invest $118.7 million (approximately 142.5 billion KRW) in the joint venture with Vedanta Group. Foxconn will own 40% of the joint venture, while Vedanta Group will be the largest shareholder.

Announcing the signing of the Memorandum of Understanding (MOU), Foxconn stated that "this will be a meaningful opportunity to grow manufacturing in India."

As the use of semiconductors expands with the advent of the electric vehicle era, countries around the world are focusing on developing the semiconductor industry, and India is no exception. Indian Prime Minister Narendra Modi has been actively encouraging foreign investment to build India's semiconductor industry ecosystem. Foxconn is expected to be the first case in this effort.

In its statement, Foxconn emphasized, "The first joint venture between Foxconn and Vedanta Group will support Prime Minister Modi's vision."

Foxconn has recently been making aggressive investments in the semiconductor sector. Last year, it signed an agreement with Stellantis to produce automotive semiconductors, and in January this year, it established a semiconductor joint venture with China's Geely Automobile.

This content was produced with the assistance of AI translation services.