Jul 11, 2023 03:33 PM IST
On Monday, the Taiwanese tech giant announced its withdrawal from a semiconductor joint venture (JV) with Vedanta Limited.
Foxconn is planning to apply separately to build a semiconductor manufacturing plant in India, the Taiwanese tech giant said on Tuesday, a day after withdrawing from a semiconductor joint venture (JV) with India’s Vedanta Limited.
Also Read | Day after Foxconn’s withdrawal from joint venture, Vedanta shares decline nearly 3% in early trade
“Foxconn is working towards submitting an application related to Modified Programme for Semiconductors and Display Fab Ecosystem. We have been actively reviewing the landscape for optimal partners, and welcome a diverse set of stakeholders, both inside India and abroad,” the company noted in a statement.
Stressing that it remains ‘committed’ to India, the world’s largest electronics contract manufacturer stated that it sees the country ‘successfully establishing a robust semiconductor manufacturing ecosystem.’
Foxconn-Vedanta joint venture
Last year, the two companies announced VFSL (Vedanta Foxconn Semiconductors Limited), a joint venture that would have invested $20 billion to set up units for semiconductor fabrication, assembly and testing, and display manufacturing, in India.
The project, which would have seen the world’s fifth-largest economy get its maiden chip manufacturing plant, was proposed under a $10 billion financial incentive scheme (Modified Programme for Semiconductors and Display Fab Ecosystem) backed by the country’s Narendra Modi government.
In its statement announcing the withdrawal, Foxconn noted that the partition was ‘mutual,’ and because of the following issues, recognised by both sides: project not moving fast enough, challenging gaps, and external issues unrelated to the project. The New Taipei-headquartered firm also clarified its name is no longer associated with the venture.
Vedanta, on the other hand, did not comment on the JV’s end, but said it was going ahead with its plans to set up a semiconductor fab. The government, meanwhile, downplayed the development, saying there will be no impact on its plans to make India a semiconductors manufacturing destination.
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