India's Semiconductor Plans Hit as Foxconn Exits $19.5B Joint Venture

Taiwan's Foxconn has pulled out of a $19.5 billion semiconductor joint venture with Indian conglomerate Vedanta, dealing a setback to Prime Minister Narendra Modi's chip-making plans for India. The decision came after more than a year of collaboration, and Foxconn will remove its name from the fully-owned entity of Vedanta. Vedanta, however, has expressed its commitment to the semiconductor project and stated that it has secured other partners to establish India's first foundry.

• The joint venture aimed to establish semiconductor and display production plants in Gujarat.

• Foxconn and Vedanta had been working together for over a year to bring the semiconductor project to reality.

• Foxconn stated that it will remove its name from the entity, which is now fully owned by Vedanta.

• Vedanta asserted its commitment to the semiconductor project and announced plans to collaborate with other partners to set up India's first foundry.

• Government officials stated that Foxconn's withdrawal will not impact India's semiconductor fabrication goals and emphasized that both companies are valued investors in India.

• "Both the companies Foxconn and Vedanta are committed to India’s semiconductor mission and Make in India program," said Ashwini Vaishnaw, Minister for Electronics and IT.

• The reasons for Foxconn's withdrawal were not specified, but there were indications that questions raised by the government regarding an incentive scheme for chip production may have played a role.

• The withdrawal of Foxconn poses a setback to India's chip manufacturing plans, but Vedanta remains determined to fulfill Prime Minister Modi's vision for the sector.

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