TAIPEI (Reuters) – Taiwan’s Foxconn has announced that Vedanta Ltd, an Indian conglomerate (NYSE:) Ltd, is its partner in Taiwan to manufacture semiconductors. The partnership was made as part of the electronics giant’s efforts to diversify the business during a chip shortage.

Foxconn, the biggest contract electronics producer in the world, and major Apple (NASDAQ) supplier has recently expanded to include semiconductors as well as electric vehicles (EVs).

Foxconn released a statement stating that they had signed a memorandum with Vedanta, an oil-to-metals company, to manufacture semiconductors. They called this “a significant boost to Indian domestic production of electronic products.”

Foxconn stated it would invest $118.7million in a joint venture firm with Vedanta to establish a majority stake in the venture. It added that Foxconn would own 40% of the venture’s shares.

The statement stated that “This joint venture of the two companies is the first-of its kind” and would support Narendra Modi, Indian Prime Minister, in his vision to establish an Indian ecosystem for semiconductor manufacturing.

After a worldwide chip shortage, which has rocked electronics producers everywhere, Taiwan’s company Yageo Corp entered into a partnership last year with Yageo Corp.

The company announced in recent years plans to expand its market share in the global EV market and stated that it is currently in negotiations with “related findries” about possible joint ventures to manufacture chips for EVs.