Foxconn, the world's largest contract electronics maker and a key Apple supplier, has branched out into new fields such as electric vehicles and semiconductors.
As the electronics giant attempts to diversify its business amid a global chip scarcity, Foxconn said on Monday that it has collaborated with Indian conglomerate Vedanta to produce semiconductors in the South Asian country.
In recent years, Foxconn, the world's largest contract electronics maker and a key Apple supplier, has moved into new fields such as electric vehicles (EVs) and semiconductors.
Foxconn stated in a statement that it has signed a memorandum of understanding with Vedanta, an oil-to-metals company, to create semiconductors, calling it "a substantial boost to domestic electronics manufacturing in India."
Foxconn said that it will spend $118.7 million (approximately Rs. 900 crore) in a joint venture with Vedanta, which would be the new firm's primary stakeholder. It was also said that Foxconn will own 40% of the venture's shares.
According to the announcement, "this first-of-its-kind collaborative venture between the two firms would promote Indian Prime Minister Narendra Modi's aim of creating an ecosystem for semiconductor production in India."
Following a global chip scarcity that has wracked manufacturers of everything from vehicles to gadgets, the Taiwanese company struck a collaboration with Yageo to build semiconductor chips last year.
In recent years, the business has stated that it intends to become a key participant in the global electric vehicle industry, and that it is in negotiations with "associated foundries" about collaborating on EV chip development.
