Mining behemoth Vedanta and Hon Hai Technology Group, commonly known as Foxconn, the world’s largest electronics manufacturing business, have teamed up to produce semiconductors in India, as the government launches the PLI (performance-linked incentive) plan to produce chips in the nation.

The two businesses stated in a statement that their first-of-its-kind collaboration will promote Prime Minister Narendra Modi’s objective of creating an ecosystem for semiconductor production in the nation. Vedanta would own the bulk of the JV’s shares, while Foxconn will be a minority partner, according to the MoU.

Chairman of Vedanta, the joint venture company’s Chairman will be Anil Agarwal. The targeted project intends to invest in semiconductor manufacturing. It will provide India’s indigenous electronics production a big boost. “Discussions with a few state governments are presently underway to finalize the plant’s site,” Foxconn added.

The government has sanctioned an investment of Rs 76,000 crore ($10 billion) for the development of the semiconductors and display manufacturing ecosystem. The PLI and other initiatives to increase semiconductors would not only aid local enterprises to overcome the hurdles provided by Covid-19 but also assist them to become internationally competitive, notably in chip manufacture, it stated.

Since this year, the Indian government has begun soliciting applications from multinational chip makers. Tower Semiconductor, TSMC, Foxconn, United Microelectronics Corp, Fujitsu, Intel, and AMD are among the firms that have expressed interest in this new possibility.