Taiwan’s Foxconn announced its withdrawal from a $19.5 billion joint venture with Indian metals-to-oil conglomerate Vedanta, in a major setback to the government’s chipmaking ambitions.
Last year, Foxconn and Vedanta had entered into an agreement to establish semiconductor and display production facilities in Gujarat. The reasons behind Foxconn’s decision were not disclosed.
“Foxconn has determined it will not move forward on the joint venture with Vedanta. Foxconn is working to remove the Foxconn name from what now is a fully-owned entity of Vedanta,” it said in a statement.
‘No Impact on India’s Semiconductor Fab Goals’
Union Minister Ashwini Vaishnaw responded to the development stating, “Both the companies Foxconn and Vedanta are committed to India’s semiconductor mission and Make in India program.”
Minister of State for Electronics and IT Rajeev Chandrasekhar said, “The decision by Foxconn to withdraw from its joint venture with Vedanta has no impact on India’s semiconductor fabrication goals.”