Mining major Vedanta and Foxconn, the world’s largest contract manufacturer, on Monday said they will form a joint venture company that will manufacture semiconductors in India.

The joint venture is the first such to respond to the government’s policy initiative to make semiconductors within the country.

Vedanta will be the majority shareholder in the JV which will be chaired by Vedanta chairman Anil Agarwal, according to a statement issued on Monday.

Vedanta is the first company to make the announcement to invest in semiconductor manufacturing after the government announced a Rs 76,000-crore programme to boost electronic chip and display ecosystem in the country.

This is also the second attempt of Vedanta to enter the semiconductor space after its earlier plans to set up a display unit five years ago with about Rs 60,000 crore investments could not take off.

“It will provide a boost to domestic manufacturing of electronics in India. Discussions are currently on with a few state governments to finalise the location of the plant,” the statement said.

Vedanta Group has presence in electronics and technology business through group companies, Avanstrate Inc and Sterlite Technologies.

The collaboration between Vedanta and Foxconn follows the government’s recent policy announcement for electronics manufacturing.