TAIPEI (Taiwan News) — Electronics manufacturer Foxconn announced on Monday (Feb. 14) it plans to enter into a joint venture with Indian conglomerate Vedanta to set up a chip plant in the South Asian country.

Foxconn, known locally as Hon Hai Technology Group, said it signed a memorandum of understanding (MOU) with Vedanta to “support Indian Prime Minister Narendra Modi’s vision to create an ecosystem for semiconductor manufacturing in India,” according to a company press release. According to the MOU, Foxconn will be a minority shareholder, while Vedanta will be a majority shareholder.

The Taiwanese company said it will take a 40% stake in the joint venture with an investment of around US$119 million (NT$3.32 billion), according to CNA. Vedanta Chairman Anil Agarwal will be chairman of the new joint venture company, Foxconn said.

The world’s largest contract electronics maker said the project “will provide a significant boost to domestic manufacturing of electronics in India.” Talks are currently ongoing with several Indian state governments to decide on the location of the chip facility.

Foxconn has been looking to diversify its business in recent years by expanding into semiconductors and electric vehicles (EVs). Last week, it announced plans to manufacture 150,000 EVs in Thailand by 2030 through a joint venture with the country’s state-owned oil supplier PTT Public Co.