Oddly Vedanta is one of India's biggest mining companies, and has no experience making chips, but how difficult can it be? It will take a 60 percent share in the joint venture while Foxconn, will take a minority stake.
The move is backed by the Indian government which wants to be free of its dependence on China and the US for chips. The manufacturing facility is being built in Prime Minister Narendra Modi's home state of Gujarat which has nothing to do with the location we just mention it.
Vedanta group chairman Anil Agarwal tweeted thanked the government for helping "tie things up so quickly".
Foxconn vice president Brian Ho said the facilities will be operational by 2024 and will also manufacture display screens for phones and tablets.
The government's semiconductor incentive scheme has already successfully wooed several investors, with Singapore's IGSS Ventures announcing $3.2 billion in July to make chips in Tamil Nadu state.