iPhone-Maker Foxconn with Vedanta to Make Chips in India Amid Global Shortage

Taiwan's based company, Foxconn said on Monday it had joined forces with Indian conglomerate Vedanta to produce semiconductors in the South Asian country, as the electronics goliath hopes to branch out its business, meanwhile the midst of a worldwide chip shortage.

Foxconn, the world's biggest contract electronics producer and a significant Apple iPhone maker, has ventured into areas based on electric vehicles (EVs) and semiconductors in recent years.

Foxconn in one of its released statements, said that it had signed a memorandum of understanding with Vedanta group, stretching from oil to metal, to make semiconductors. The company refers to it as "a significant boost to domestic manufacturing of electronics in India."

Foxconn said it would contribute its $118.7 million (generally Rs. 900 crore) into investment to set up a joint endeavor firm with Vedanta, which would be the greater investor of the new pursuit. Foxconn would hold 40% of the endeavor's portions, it added.

"This first-of-its-kind joint endeavor between the two firms will support Indian Prime Minister Narendra Modi's vision to create an ecosystem for semiconductor manufacturing in India," the statement stated.

In the last few years, The Taiwan based firm has observed semiconductors as one of its core businesses and last year formed an association with Yageo to make semiconductor chips, following a worldwide chip deficiency that has shaken producers of products from vehicles to gadgets.

The organization has likewise lately declared plans to turn into a key player in the worldwide EV market, and has said it was in talks with "related foundries" on possible collaboration efforts to make chips for EVs.