Vedanta-Foxconn JV to start semiconductor manufacturing as soon as government nod

Last year, industrialist Anil Agarwal-led Vedanta Group and Hon High Technology Group (Foxconn) entered into an agreement to form a joint venture company that would manufacture semiconductors in India. Months later in September, the two signed an MoU with the Gujarat government to invest Rs 1,54,000 crore to set up the plant in the state.

After it emerged that the government is in favor of Vedanta being a ‘junior partner’ in the JV, Akarsh Hebbar, global managing director of the display and semiconductor business, has shared that there has been no change in the shareholding structure. The oil-to-metals group will retain 63 per cent stake in the JV company, while Taiwan’s Foxconn will hold the remaining 37 per cent.

He further cleared the air around concerns that the JV is unable to get funding, adding that talks were on and financial investors were “on board”. The investment in the first phase will be around $12 billion (Rs 99,259 crore).

“We’re talking about $7.5 billion for semiconductor manufacturing and about $3-4 billion for display (manufacturing),” he said. No change in shareholding structure.