Officials said Tuesday that Indian oil-to-metals conglomerate Vedanta and global manufacturing behemoth Foxconn have signed a Memorandum Of Understanding (MOU) with the Indian state of Gujarat to establish a $20 billion semiconductor and display unit in the coastal state that Prime Minister Narendra Modi calls home.
According to top officials, Foxconn will bring technical expertise to the venture, while Vedanta, which has a mining background, will finance it. Gujarat will provide capital expenditure and electricity subsidies to the project.
The state of Gujarat will “offer every possible help in this project,” said Chief Minister Bhupendrabhai Patel at a press conference on Tuesday. “Every state government department will also provide all possible assistance to make this project successful.”
The move on Tuesday is the latest step in India's growing ambition to expand its hardware manufacturing prowess as the world's second most populous country strives to become self-sufficient. New Delhi has launched several incentive programs worth more than $10 billion in order to entice global conglomerates to manufacture in India.
In February of this year, Mumbai-based Vedanta announced a partnership with Taipei-based Foxconn to form a joint venture company for manufacturing semiconductors in the South Asian market. The Indian company owns the majority of the joint venture. According to the agreement, the joint venture company will be led by Vedanta chairman Anil Agarwal.
The collaboration between Vedanta and Foxconn occurred more than a month after the Indian government launched the India Semiconductor Mission as a business division to attract semiconductor companies. In late July, the Gujarat government announced a dedicated semiconductor policy to collaborate with New Delhi and promote semiconductor manufacturing in the state.