Foxconn said it worked with Vedanta for more than a year to bring "a great semiconductor idea to reality" but the two parties have now mutually decided to end the joint venture
The two companies had signed an agreement last year to manufacture semiconductors in Gujarat
Vedanta said it is fully committed to its semiconductor fab project and will partner with other companies for it
Taiwanese electronics giant Foxconn on Wednesday (July 10) said it has decided to withdraw from a $19.5 Bn joint venture with Indian metals-to-oil conglomerate Vedanta to manufacture semiconductors in India.
The two companies had signed an agreement last year to manufacture semiconductors in Gujarat.
“Foxconn has determined it will not move forward on the joint venture with Vedanta,” the company said in a statement as per reports.
The company said it worked with Vedanta for more than a year to bring “a great semiconductor idea to reality” but the two parties have now mutually decided to end the joint venture. Hence, Foxconn will remove its name from the JV which is now a fully-owned Vedanta entity.
Meanwhile, the Indian conglomerate said it will partner with other companies to manufacture semiconductor fab in the country.
“Vedanta reiterates that it is fully committed to its semiconductor fab project and we have lined up other partners to set up India’s first foundry. We will continue to grow our semiconductor team, and we have the license for production-grade technology for 40 nm from a prominent Integrated Device Manufacturer (IDM). We will shortly acquire a license for production-grade 28 nm as well,” Vedanta said in a statement.
Semiconductors are an essential component to manufacture electronic devices. As shortage of semiconductors often leads to an increase in input costs for many products and services, the government is looking at making the country self-reliant in the semiconductor segment across innovation, designing, manufacturing.
In December 2021, the Indian government approved the Semicon India programme, aimed at developing India’s semiconductors and display manufacturing ecosystem. It has an outlay of INR 76,000 Cr.
Commenting on Foxconn’s decision to withdraw from the joint venture, Minister of State for Electronics and Information Technology Rajeev Chandrasekhar said it would have no impact on India’s semiconductor goals.
Both Foxconn and Vedanta have significant investments in India and are valued investors who are creating jobs and growth, the minister said on Twitter.
As per the government’s vision document, India will use semiconductors worth $70-$80 Bn to manufacture electronics products worth $300 Bn by 2026.
Recently, Micron Technology said that it would invest $825 Mn in Gujarat to set up a new semiconductor assembly and test facility.
