Foxconn has decided to pull out of a $19.5 billion semiconductor joint venture with Vedanta in India.
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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