Indian semiconductor joint venture Foxconn wants to spend $118 million

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It is possible that Foxconn’s partnership with Vedanta may assist alleviate the worldwide scarcity of semiconductors by increasing manufacturing in India.

In a partnership announced Monday, Foxconn and Vedanta, an oil-to-metals business, have inked a memorandum of understanding to make semiconductors together. The joint venture would “significantly expand local manufacture of electronics in India,” according to the initiative’s mission statement.

According to Reuters, Foxconn will make an investment of $118.7 million in the firm and take a 40% stake in it, while Vedanta will become the company’s dominant stakeholder.

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Indian Prime Minister Narendra Modi’s ambition to develop an environment for semiconductor production in India is supported by the proposal, Foxconn said.

Although Foxconn is an important Apple partner, it is unlikely to have much of an influence on the Apple supply chain since it handles iPhone assembly among other things. To counteract the decline in smartphone market growth, Foxconn has stated interest in constructing electric car manufacturing throughout the United States, Europe, and Thailand.

In India, Apple and Foxconn collaborate, with the latter producing iPhones for the country’s consumers. However, a protest in late 2021 persuaded Apple to place the company “on probation,” which forced an improvement in labour conditions at the site.

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Despite this, Apple plans to develop and test new production techniques in India, announcing plans in November.

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