Vedanta and Foxconn sign agreement with Indian state for $20 billion semiconductor unit

Indian oil-to-metals conglomerate Vedanta and global manufacturing giant Foxconn have signed a memorandum of understanding with the Indian state of Gujarat to establish a $20 billion semiconductor unit in the coastal state that Prime Minister Narendra Modi calls home.

According to top officials, Foxconn will bring technical expertise to the venture, while Vedanta, which has a mining background, will finance it. Gujarat will provide capital expenditure and electricity subsidies to the project. Gujarat will “offer every possible assistance in this project,” said Chief Minister Bhupendrabhai Patel at a press conference on Tuesday. “Every state government department will also provide all possible assistance to ensure the success of this project.”