Taiwan’s Foxconn has decided to withdraw from a $19.5 billion semiconductor joint venture with Anil Agarwal’s Vedanta due to difficulties in finding a suitable technology partner capable of manufacturing chips for various electronic devices. Foxconn, the world’s largest contract electronics maker, confirmed its decision in a statement, stating that it will not proceed with the joint venture with Vedanta. In response, Vedanta expressed its full commitment to its semiconductor fab project and announced that it has lined up alternative partners to establish India’s first foundry.
Foxconn announced that it intends to submit a fresh application for establishing a semiconductor unit under the government’s chip incentive scheme worth Rs 76,000 crore. The joint venture between Vedanta and Foxconn encountered challenges in securing a technology partner capable of manufacturing chips used in various electronic devices, such as mobile phones, refrigerators, and cars. Foxconn stated that it is actively reviewing the landscape to find optimal partners and is working towards submitting an application related to the modified program for semiconductors and display fab ecosystem.
The company welcomed a diverse set of stakeholders, both domestic and international, who share the goal of advancing India’s semiconductor industry. Foxconn emphasized its world-class supply chain management and manufacturing efficiency and its commitment to supporting India’s Make in India initiative.
Foxconn reiterated its commitment to investing in India, despite the challenges of establishing fabs in a new geographical location. The company stated that it has been tackling similar challenges since the 1980s and will continue to support the Indian government’s Make in India ambitions.
Recently, Vedanta assumed full ownership of the joint venture with Foxconn and brought its semiconductor and display glass businesses, previously held by Twin Star Technologies, under its own portfolio. Vedanta clarified that no capital or fixed assets were injected into the joint venture.
