HIGHLIGHTS
- Foxconn declared aspirations to become a key participant in the global electric vehicle industry. Foxconn teamed with Indian company Vedanta.
- In the face of a chip scarcity, the corporation is attempting to diversify its operations.
Foxconn said on Monday that it has collaborated with Indian conglomerate Vedanta to manufacture semiconductors in the South Asian country, as the electronics behemoth seeks to diversify its operations in the face of a worldwide chip scarcity.
In recent years, Foxconn, the world's largest contract electronics maker and a major Apple supplier, has expanded into sectors such as electric vehicles (EVs) and semiconductors.
Foxconn stated in a statement that it has signed a memorandum of understanding with oil-to-metals business Vedanta to manufacture semiconductors, calling it "a substantial boost to local electronics manufacturing in India."
Foxconn said it will invest $118.7 million (approximately Rs. 900 crore) to form a joint venture with Vedanta, which would be the majority stakeholder. Foxconn would own 40% of the business, according to the statement.
"This first-of-its-kind collaboration between the two firms will promote Indian Prime Minister Narendra Modi's objective of creating an ecosystem for semiconductor production in India," according to the announcement.
In recent years, the Taiwanese company has listed semiconductors among its key operations, and last year struck a cooperation with Yageo to manufacture semiconductor chips, in response to a global chip shortage that has frightened manufacturers of everything from vehicles to gadgets.
In recent years, the business has also indicated aspirations to become a key participant in the global EV industry, and has stated that it is in negotiations with "relevant foundries" about prospective collaboration to create chips for EVs.
