The JV is expected to set up a semiconductor manufacturing plant in the next two years.Īs per a Bloomberg report, Kranthi Bathini, a strategist with WealthMills Securities said, 'the rally in Vedanta shares happened following euphoric statements from the founders about their new line of business. The project envisages an outlay of ₹1.54 lakh crore and is expected to employ about 1 lakh people. Vedanta will hold a majority stake of up to 60%, and the remaining 40% will be held by Foxconn in the JV. To set up the plant, Vedanta will form a joint venture with Taiwanese multinational electronics contract manufacturer, Foxconn.

This week, in a statement, Vedanta said the company signed two Memorandum of Understanding (MoUs) with the Gujarat government to set up a semiconductor fab unit, a display fab unit, and a semiconductor assembling and testing unit in the Ahmedabad district of the state.

On Thursday, in its regulatory filing, Vedanta said, ' we reiterate that the proposed business of manufacturing semiconductors is not under Vedanta and we understand that it will be undertaken by the ultimate holding company of Vedanta, Volcan Investments.' However, on the last trading day of the current week, Vedanta shares pulled back and slipped by at least nearly 9% on BSE after the company said, the semiconductor plant project is not under their ambit but will be undertaken by Volcan Investments. This led to a strong buying on stock exchanges that drove Vedanta to rise nearly 18% this week.

Vedanta's chairman Anil Agarwal earlier this week announced the biggest investment of ₹1.54 lakh crore for setting up the country's first-ever semiconductor chip plant in Gujarat.

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