Vedanta-Foxconn Joint Venture to Build Semiconductor Factory in Gujarat; Signed a memorandum of understanding with the Gujarat government

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The Vedanta-Foxconn partnership has signed two Memorandums of Understanding (MoU) with the Gujarat government to establish display and semiconductor manufacturing facilities in the state. The companies intend to invest US$19.5 billion (approximately Rs. 1,54,350 crore) under the joint partnership. According to Foxconn and Vedanta, the joint venture’s new plants will create more than 1,00,000 jobs in Gujarat. The companies plan to begin manufacturing display and chip products within the next two years. It should be noted that Gujarat defeated Maharashtra in a close race for the factory location.

The joint partnership of Vedanta and Foxconn has signed MoUs with the Gujarat government to set up display and semiconductor manufacturing facilities in Prime Minister Narendra Modi’s home state of Gujarat. As mentioned, the company intends to invest US$19.5 billion (approx. Rs.1,54,350 crore) through the partnership. Under the terms of the agreement, the Vedanta-Foxconn joint venture will establish a semiconductor manufacturing unit, a display manufacturing unit and a semiconductor assembly and test unit in Ahmedabad.

A report earlier this week had [said](https://gadgets360.com/laptops/news/vedanta-gujarat-semiconductor-plant-foxconn-usd-20-billion-3338094) that the joint venture has received subsidies from Gujarat, including investment and electricity, to Set up units near Ahmedabad.

The Vedanta Foxconn project is expected to create 1,00,000 jobs in Gujarat. Foxconn will act as a technical partner in the company, while Vedanta will fund the project.

The investment of Rs. 1,54,000 crore is said to be the largest ever made by a group in any Indian state. This major investment comes ahead of important local elections in Gujarat. Communications and IT Minister Ashwini Vaishnaw also announced the deal with a tweet.

As a reminder, Gujarat defeated Maharashtra in a close race for the factory location.

Meanwhile, the joint venture was between Vedanta and Foxconn [announced](https://gadgets360.com/mobiles/news/foxconn-vedanta-india-chip-semiconductor-partnership-global-shortage-iphone-maker-apple-supplier-2768928) in February of this year when the two companies collaborated on the Government of India Semiconductor Manufacturing Scheme. Under the terms of the agreement, Vedanta will own 60 percent of the equity while Foxconn will own 40 percent.






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