Key Takeaways
- Foxconn withdrew from the $19.5 billion joint venture with Vedanta, halting a major semiconductor project.
- The decision is a setback to Prime Minister Narendra Modi’s chipmaking plans for India.
- The planned plants in Gujarat remain uncertain, with Vedanta yet to comment.
On Monday, July 10, Taiwan’s Foxconn announced it has withdrawn from a $19.5 billion joint venture with Vedanta, the Indian metals‑to‑oil conglomerate.
This move is a setback to Prime Minister Narendra Modi‘s chipmaking plans for India. Nevertheless, Foxconn has not explained why it took this decision.
It was last year that Foxconn and Vedanta had signed a pact to set up semiconductor and display production plants in Gujarat, the PM’s home state. In a statement released, Foxconn said, ‘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.’
This step by Foxconn comes as a big blow to the plans envisioned by PM Modi, wherein chipmaking has been made a top priority for India’s economic strategy, to lead to a ‘new era’ in electronics manufacturing, by attracting foreign investors to make chips locally for the first time.
Vedanta is yet to make a comment on the matter.
