Vedanta Group has taken full ownership of the joint venture with Foxconn set up last year to manufacture semiconductors in India.
The JV , Vedanta Foxconn Semiconductors Private Limited, was a wholly owned subsidiary of Vedanta group entity Twin Star Technologies Limited.
Vedanta also said it would take over a display glass manufacturing venture from Volcan Investments, Vedanta’s holding company. Volcan and Foxconn had agreed last year to invest $19.5 billion to set up semiconductor and display production plants in Gujarat to tap into the country’s plans to become an electronics major.
It was earlier reported that the joint venture with Foxconn was not progressing well due to differences in rollout strategies. The initial application submitted by Vedanta for the semiconductor unit was also not approved by the government hence the company has filed a revised proposal.
The acquisition will be effected by way of a share transfer at face value of Twin Star Technologies Limited’s (TSTL) Semiconductor and Display SPVs. TSTL is a wholly owned subsidiary of Volcan Investments Limited, the ultimate holding company of Vedanta Limited.
Made in India
Vedanta Chairman, Anil Agarwal said, “Vedanta is committed to making India self-reliant in electronics. This is the beginning of the creation of a Silicon Valley in India, a cutting edge and world class electronics ecosystem. My dream is for every Indian youth to have an affordable smartphone, laptop and an electric vehicle.”
David Reed, CEO of Vedanta’s Semiconductor Business, said, “I believe that India can become the next semiconductor hub for the world. It has all the ingredients for success.” Vedanta Ltd will leverage its expertise in large-scale manufacturing and operational excellence and partner with the best global companies to drive the two businesses. “Made in India semiconductors and display glass will facilitate affordable electronics – smartphones, laptops, televisions, and electric vehicles for all Indians.”