India (Commonwealth) _ Taiwan’s Foxconn chose to withdraw from a semiconductor joint venture with Indian conglomerate Vedanta on Monday, dealing a temporary setback to India’s chip manufacturing goals and a blow to plans of Indian Prime Minister Narendra Modi.
Foxconn stated in a statement that it is “working to remove the Foxconn name from what is now a fully-owned Vedanta entity.” Foxconn stated: “Hon Hai Technology Group has no affiliation with the entity and efforts to maintain its original name will confuse future stakeholders.”
The global contract electronics manufacturer Foxconn and Vedanta had signed a contract last year to construct semiconductor and display manufacturing facilities in Gujarat at an estimated cost of Rs 1.5 lakh crore.
Foxconn and Vedanta mutually decided not to move further with the joint venture in order to look into more diverse development opportunities, the company said. Vedanta and Hon Hai Technology Group (Foxconn), according to the press release, have been putting in a lot of effort for more than a year to accomplish a dazzling semiconductor invention. It has been a successful venture that will guarantee both businesses a prosperous future.
“Foxconn is bullish about the direction the semiconductor sector in India is headed. The government’s ‘Make in India’ objectives will continue to have our steadfast support, and we will establish a number of local alliances to meet the needs of stakeholders,’ the statement said.
Vedanta stated after the news that it is completely committed to its semiconductor project and has lined up other partners to establish India’s first foundry. In a statement, Vedanta stated that it has intensified efforts to realize PM Modi’s vision for semiconductors and confirmed that India continues to play a crucial role in realigning the world’s semiconductor supply chains.
We have lined up additional partners to establish India’s first foundry, and Vedanta affirms its unwavering commitment to its semiconductor fab project. We have the license for 40 nm production-grade technology from a well-known Integrated Device Manufacturer (IDM), and we plan to expand our semiconductor team, according to Vedanta.
Rajeev Chandrasekhar, the Union minister of state for IT, tweeted that Foxconn’s decision to leave their joint venture with Vedanta had no bearing on India’s plans for semiconductor manufacturing. He claimed that both businesses continue to make large investments in India and are respected investors who support both growth and job creation.
The minister emphasized that it was not the responsibility of the Center to delve into the factors influencing whether two private enterprises partnered or not. “In simple terms, it means both companies can and will now pursue their strategies in India independently, and with appropriate technology partners in Semicon and Electronics,” he stated.
According to Ashwini Vaishnaw, the Union Minister for Electronics and IT, both businesses are dedicated to India’s Make-in-India initiative and semiconductor goal. the Taiwan-based company left the joint venture after the government questioned its application for a chip manufacturing incentive program. Requests for comment from Vedanta and Foxconn were not immediately fulfilled.
Questions have been raised as to whether Vedanta still has access to the 40 nm production-grade license and technology in light of Foxconn’s withdrawal from the JV. The business declined to comment to BT’s inquiries, but it had stated in a statement following Foxconn’s announcement that it will “continue to grow our semiconductor team” and that it “has the license for production-grade technology for 40 nanometer (nm) from a prominent Integrated Device Manufacturer (IDM).”
In June, the JV had resubmitted its request for the incentive program based on this license. Additionally, the application was being evaluated, according to Rajeev Chandrasekhar, Minister of State for Electronics and IT, who spoke with the international and local media.
