What is the joint venture between Vedanta and Foxconn all about?

Vedanta has signed an agreement with Foxconn, based out of Taiwan and a major chip outsourcer globally, to manufacture semiconductors in India. Currently, the world is going through a major shortage of semiconductors and India is no exception to this trend. There are fresh capacities likely to come up only in the next 3-4 years, but that is unlikely to cover the short term surge in demand that is seen the world over.

Vedanta will use this JV to avail the benefits of the Rs.76,000 crore production linked incentive (PLI) scheme. In the last couple of years, there has been a surge in demand for semiconductors from sectors ranging from automobiles, electronic goods, white goods etc. Vedanta will be the majority stakeholder in the joint venture with Foxconn. This is the first electronics manufacturing JV post the PLI announcement, which will create 7.5 million jobs.