Taiwan’s Foxconn has decided to withdraw from a $19.5bn semiconductor joint venture with Indian metals-to-oil conglomerate Vedanta, according to a statement. This move is seen as a setback to Prime Minister Narendra Modi’s chipmaking plans for India.
The world’s largest contract electronics maker had signed an agreement with Vedanta last year to establish semiconductor and display production plants in Modi’s home state of Gujarat.
“Foxconn has made the decision not to proceed with the joint venture with Vedanta,” stated Foxconn on Monday, without providing further details on the reasons behind the decision.
The company mentioned that it had collaborated with Vedanta for over a year to bring “a great semiconductor idea to reality”. However, they mutually agreed to terminate the joint venture, and Foxconn will remove its name from the entity, which is now fully owned by Vedanta.
Vedanta stated that it remains fully committed to its semiconductor project and has “lined up other partners to establish India’s first foundry”. The company added in a statement that it has intensified its efforts to fulfill Modi’s vision.
A source familiar with the matter revealed that concerns about delays in obtaining government incentives had contributed to Foxconn’s decision to withdraw from the venture. The source also mentioned that New Delhi had raised several questions regarding the cost estimates provided to request incentives from the government.
Article from www.aljazeera.com