Foxconn withdraws from $19.5 billion joint venture with Vedanta in Gujarat

Gandhinagar: Taiwan’s Foxconn announced on Monday that it is withdrawing from its joint venture with Vedanta Ltd, which aimed to manufacture semiconductors in India. The company released a statement confirming its withdrawal from the $19.5 billion joint venture with Indian metals-to-oil conglomerate Vedanta.

Last year, Foxconn and Vedanta entered into an agreement to establish semiconductor and display production facilities in Gujarat. However, today Foxconn decided to pull out from the project without providing specific reasons for its decision.

In a statement quoted by news agency Reuters, Foxconn stated, “Foxconn has decided not to proceed with the joint venture with Vedanta. Foxconn is taking steps to remove the Foxconn name from the entity, which is now fully owned by Vedanta.”

In the latest development, Vedanata has issued a statement saying “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 has redoubled its efforts to fulfill the Prime Minister’s vision for semiconductors and India remains pivotal in repositioning global semiconductor supply chains. DeshGujarat