Taiwan’s Foxconn strikes US$19.4 billion deal to make chips in India as part of Narendra Modi’s ambitious tech plans

Vedanta, one of India’s largest mining companies, will take a 60 per cent share in the joint venture for its first step into chip-making

New Delhi approved a US$10 billion incentive plan in December to kick-start its own domestic industry by covering up to half of all project costs

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Taiwan’s Foxconn will join forces with India’s Vedanta to make semiconductors as part of an ambitious investment scheme. Photo: Bloomberg

Published: 5:12pm, 15 Sep 2022

Taiwanese electronics giant Foxconn will invest US$19.4 billion to make semiconductors in India with local conglomerate Vedanta, backed by New Delhi’s push to boost tech self-reliance after a global chip shortage.

Semiconductors are an essential component of nearly all modern electronics, from smartphones to kitchen appliances and cars, but the coronavirus pandemic affected global production and leading manufacturers are still struggling to meet demand.

India approved a US$10 billion incentive plan last December to kick-start its own domestic industry by covering up to half of all project costs.

The deal announced on Tuesday is the scheme’s most ambitious investment to date and will see a manufacturing facility built in Prime Minister Narendra Modi’s home state of Gujarat.

“India’s own Silicon Valley is a step closer now,” Vedanta group chairman Anil Agarwal tweeted on Tuesday, thanking the government for helping “tie things up so quickly”.

Vedanta, one of India’s biggest mining companies, will take a 60 per cent share in the joint venture for its first step into chip making.