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Indian Prime Minister Narendra Modi met Taiwan-based manufacturing giant Foxconn’s Chairman Young Liu Thursday and hailed the company’s electronics manufacturing plans in the country.
“Glad to meet Mr. Young Liu, Chairman, Foxconn. I welcome their plans for expanding electronics manufacturing capacity in India, including in semiconductors,” Modi said in a tweet.
The Taiwan-based company (2021 revenue US$178 billion) plans to set up an electric vehicle (EV) manufacturing plant in India, in addition to such plants in southeast Asia via its EV subsidiary Foxtron.
“Our push for EV manufacturing is in line with our commitment of Net Zero Emission,” Modi said in the tweet.
Liu also met Akarsh Hebbar, Vedanta Group’s global managing director of display and semiconductor business, to discuss next steps for their proposed partnership to manufacture semiconductor chips in the country.
Vedanta and Foxconn signed a memorandum of understanding in February this year to form a joint venture company in India. Vedanta will hold 60 per cent of the equity in the JV with Foxconn owning the rest.
“The Vedanta-Foxconn partnership will, in the coming years, arrest the electronic component import bill of around $100 billion. Vedanta and Foxconn are in discussion with some state governments to finalize the location of semiconductor units soon,” the companies said in a statement.
This is the first joint venture in the electronics manufacturing space after the announcement of the production-linked incentive (PLI) scheme for semiconductors and display manufacturing.
Vedanta plans to invest around US$15 billion in phases over the next decade to build displays and semiconductor chips in India.
The JV will look at setting up a semiconductor manufacturing plant in the next two years, the companies said.
The Indian government recently announced an outlay of around $10 billion, under its PLI scheme, separately for the development of a semiconductor and display manufacturing electronics ecosystem.
Modi meets Foxconn chief, praises manufacturing plans
