Vedanta chairman Anil Agarwal on Tuesday said that the company in partnership with Foxconn will set up a semiconductor manufacturing plant in the next two years. The Indian conglomerate had already entered into a pact with electronics manufacturing giant Foxconn to form a joint venture (JV) for manufacturing semiconductors in India. Agarwal termed the signing up of the pact with Foxconn as a "very big job", and said that the semiconductor industry will promote other sectors like automobiles and electronics in the country. Vedanta had unveiled its plan to invest in semiconductor manufacturing after the government announced a Rs 76,000-crore package to boost electronic chip and display ecosystem in the country. This is also the second attempt of Vedanta to enter the semiconductor space after its earlier plan to set up a display unit with about Rs 60,000 crore investment could not take off. Agarwal was speaking at the 7th National Leadership Conclave.
According to the memorandum of understanding earlier signed between the two companies, Vedanta will hold the majority equity in the JV, while Foxconn will be the minority shareholder. Vedanta's chairman will be the chairman of the joint venture. Discussions are currently ongoing with a few state governments to finalise the location of the plant, the company had earlier said. "This will be the first joint venture in the electronics manufacturing space after the announcement of the policy," the company had said.