Taiwan's electronics giant Foxconn has entered into partnership with Anil Agarwal-led Vedanta Ltd to make chips in India, as part of the new supply chains that are developing following the alienation of China.

"This first-of-its-kind joint venture between the two companies will support Indian Prime Minister Narendra Modi's vision to create an ecosystem for semiconductor manufacturing in India," Foxconn said in a statement.

Foxconn, is the world's largest contract electronics manufacturer and a major supplier to Apple. It has also expanded into areas such as electric vehicles (EVs) and semiconductors in recent years.

Foxconn said it has signed a memorandum of understanding with oil-to-metals group Vedanta to make semiconductors, calling it "a significant boost to domestic manufacturing of electronics in India."

Foxconn said it would invest $118.7 million to set up a joint venture company with Vedanta. While the Indian company would hold a majority stake in the Foxconn would have a 40% share, the company said.

The Taiwan company has in recent years counted semiconductors among its core businesses and last year formed a partnership with Yageo Corp to make semiconductor chips, following a global chip shortage that has hit the output of goods ranging from cars to electronics.

Foxconn aims to become a major player in the global EV market, and has said it was in talks with some companies on possible collaboration to make chips for EVs.

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