$19.5 billion chip-making contract at sea!
India (Commonwealth Union)_ Last year, Foxconn and Vedanta signed an agreement to establish semiconductor and display production facilities in Gujarat, with a substantial investment of around Rs 1.5 lakh crore. However, Foxconn, the world’s largest contract electronics manufacturer, has now announced its decision to pull out of the semiconductor joint venture with Indian conglomerate Vedanta. This move temporarily hampers India’s chip manufacturing plans.
Foxconn stated its intention to disassociate itself from Vedanta’s fully-owned entity, citing concerns that maintaining its name would lead to confusion among future stakeholders. In a formal statement, Foxconn made it clear that it has no connection with the conglomerate and expressed its desire to explore more diverse development opportunities. Despite discontinuing the joint venture, Foxconn expressed confidence in India’s semiconductor industry and reiterated its support for the government’s ambitious plans for the “Make In India” initiative.
Rajeev Chandrasekhar, Union Minister of State for IT, announced that Foxconn’s retreat would not impede India’s semiconductor fabrication plans. He emphasized the substantial investments and job creation made by both companies in the country. Chandrasekhar also clarified that the partnership or non-partnership decisions of private entities are beyond the government’s purview. Echoing Chandrasekhar’s sentiments, Union Minister of Electronics and IT, Ashwini Vaishnaw, underscored the commitment of both enterprises to India’s semiconductor goals and the country’s Make-in-India initiative.
Responding to Foxconn’s decision, Vedanta reaffirmed its unwavering commitment to the semiconductor project and revealed its collaboration with additional partners to establish India’s first foundry. The company also expressed its dedication to achieving Prime Minister Narendra Modi’s ambitious plans for semiconductors and highlighted India’s crucial role in reshaping global semiconductor supply chains. According to media reports, Foxconn’s decision to exit the joint venture was influenced by the Indian government’s concerns about the company’s application for an incentive program relating to chip manufacture.
