Which Indian company announced forming a JV with Foxconn to manufacture semiconductors in India?
Godrej
Jindal
Dabur
Vedanta
Answer: Vedanta
According to a top executive at Anil Agarwal’s Vedanta group, the company wants to invest $8.4 billion in a semiconductor manufacturing unit in collaboration with Hon Hai Technology Group (Foxconn). According to Akarsh Hebbar, worldwide managing director of Vedanta Group’s display and semiconductor business, the company has already applied for the government’s incentive plan and hopes to have the manufacturing facility operational by 2024. The 28-nanometer (nm) fab will target smartphones and electronics, with a 70-80 percent domestic market share and the remainder exported.
Hebbar further stated that Foxconn, although having no prior semiconductor production experience, was the ideal partner for the project due to its global network in electronics manufacturing. “The total project cost for 28 nanometres is around $7-$8 billion,” Hebbar stated. “We want to make sure that the plant comes on board by 2024. We are looking at the site, equity structure, and more. Foxconn is investing around $118 -$120 million.”
He stated that Vedanta intends to invest $15 billion in phases through a combination of loan and equity, including approximately $5 billion for semiconductors and $10 billion for screens. Vedanta is targeting the mobile phone and consumer electronics markets with 28 nm chips, but will eventually look into autos with 28 nm or below.
“We want to focus on the domestic market and want to sell around 70-80% locally and export value can come in accordingly depending on the cycle to around 30-20%,” Hebbar added. “We are very hopeful that the government approval will come in the next 3-4 months.”
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