As Foxconn exits, Vedanta says it has lined up partners for semiconductor venture

Reuters | | Posted by Nisha Anand

Jul 12, 2023 04:09 PM IST

India‘s Vedanta has lined up partners for its semiconductor manufacturing venture in the country, group chairman Anil Agarwal said on Wednesday, days after its joint-venture partner Foxconn pulled out of the chipmaking project.

Foxconn withdrew from a $19.5 billion semiconductor joint venture with the metals-to-oil conglomerate earlier this week.

Foxconn separately intends to apply for incentives under India’s semiconductor production plan.

In an address to the shareholders, Agarwal said Vedanta will “this year, subject to government approval” begin its foray to setup its semiconductor and display units.

Also Read: Foxconn plans India semiconductor unit without Vedanta, seeks ‘diverse’ stakeholders

After Foxconn pulled out, Vedanta said it has lined up partners for the venture, without giving any further details.

Volcan Investments, Vedanta’s holding company and Foxconn had signed a pact last year to set up semiconductor and display production plants in Prime Minister Narendra Modi’s home state Gujarat in western India.

Reuters has reported that deadlocked talks on finalising European chipmaker STMicroelectronics as a tech partner, and delayed incentive approvals were among reasons for Foxconn’s pullout from the JV.