Foxconn and Vedanta both lack past chip-making experience and technology. They were supposed to get it via a technological partner.
New Delhi, India – The departure of Taiwan’s Foxconn from a critical $19.5 billion joint venture with Vedanta will have no impact on India’s semiconductor program, Union Minister Ashwini Vaishnaw told NDTV today. In a statement, Foxconn stated that the decision to discontinue the joint venture was mutual.
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Foxconn and Vedanta both lack past chip-making experience and technology. It was believed that they would obtain it via a technical partner.
“Foxconn and Vedanta are both committed to Prime Minister Narendra Modi’s Make in India policy and India’s semiconductor program.” The withdrawal of Foxconn from the joint venture with Vedanta will have no effect on India’s semiconductor program, according to Union Information Technology Minister Mr Vaishnaw.
In September 2022, Vedanta and Foxconn agreed to invest $19.5 billion in Gujarat, PM Modi’s home state, to establish semiconductor and display manufacturing factories.
In May of this year, it was reported that the joint venture was “struggling” to find a technological partner.
According to persons with intimate knowledge of the situation, both companies have now found their technological partners.
Vedanta and Foxconn had agreed to license technology from STMicro, but the government had made it plain that it wanted the European chipmaker to have “more skin in the game,” such as a stake in the partnership, according to Reuters.
The financial markets regulator SEBI also punished Vedanta last month for violating disclosure regulations by posting a news release that made it appear it cooperated with Foxconn to manufacture semiconductors in India, despite the fact that the contract was with Vedanta’s holding company.
As the joint venture comes to an end, Vedanta stated that it remains committed to its semiconductor project and has lined up additional partners to establish India’s first foundry.
“It was well known that both companies had no prior semiconductor experience or technology and were expected to source technology from a partner,” tweeted Union Minister Rajeev Chandrasekhar.
Vedanta today stated that it has increased its efforts to fulfill Prime Minister Modi’s vision for semiconductors and that India is critical in repositioning global semiconductor supply chains.
