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NEW DELHI: In a setback to India’s chip manufacturing plans, Foxconn on Monday decided to pull out of a semiconductor joint venture with Indian conglomerate Vedanta.
While issuing a statement, Foxconn said it is “working to remove the Foxconn name from what now is a fully-owned entity of Vedanta”.
“Foxconn has no connection to the entity and efforts to keep its original name will cause confusion for future stakeholders,” Hon Hai Technology group (Foxconn) said.
Foxconn, the global contract electronics maker, and Vedanta had inked an agreement last year to build semiconductor and display production plants in Gujarat entailing an investment of abour Rs 1.5 lakh crore.
“In order to explore more diverse development opportunities, according to mutual agreement, Foxconn has determined it will not move forward on the joint venture with Vedanta,” the company said.
The statement said that for over a year Hon Hai Technology Group (Foxconn) and Vedanta have worked hard to bring a great semiconductor idea to reality. It has been a fruitful experience that can position both companies strongly going forward.
“Foxconn is confident about the direction of India’s semiconductor development. We will continue to strongly support the government’s ‘Make In India’ ambitions and establish a diversity of local partnerships that meet the needs of stakeholders,” it said.
Post withdrawal, Vedanta asserted that it is fully committed to its semiconductor project and has lined up other partners to set up India’s first foundry.
Vedanta in a statement said that it has redoubled efforts to fulfil PM Modi’s vision for semiconductors and affirmed that India remains pivotal in repositioning global semiconductor supply chains.
“Vedanta reiterates that it is fully committed to its semiconductor fab project and we have lined up other partners to set up India’s first foundry. We will continue to grow our Semiconductor team, and we have the license for production-grade technology for 40 nm from a prominent Integrated Device Manufacturer (IDM),” Vedanta said.
(With agency inputs)
While issuing a statement, Foxconn said it is “working to remove the Foxconn name from what now is a fully-owned entity of Vedanta”.
“Foxconn has no connection to the entity and efforts to keep its original name will cause confusion for future stakeholders,” Hon Hai Technology group (Foxconn) said.
Foxconn, the global contract electronics maker, and Vedanta had inked an agreement last year to build semiconductor and display production plants in Gujarat entailing an investment of abour Rs 1.5 lakh crore.
“In order to explore more diverse development opportunities, according to mutual agreement, Foxconn has determined it will not move forward on the joint venture with Vedanta,” the company said.
The statement said that for over a year Hon Hai Technology Group (Foxconn) and Vedanta have worked hard to bring a great semiconductor idea to reality. It has been a fruitful experience that can position both companies strongly going forward.
“Foxconn is confident about the direction of India’s semiconductor development. We will continue to strongly support the government’s ‘Make In India’ ambitions and establish a diversity of local partnerships that meet the needs of stakeholders,” it said.
Post withdrawal, Vedanta asserted that it is fully committed to its semiconductor project and has lined up other partners to set up India’s first foundry.
Vedanta in a statement said that it has redoubled efforts to fulfil PM Modi’s vision for semiconductors and affirmed that India remains pivotal in repositioning global semiconductor supply chains.
“Vedanta reiterates that it is fully committed to its semiconductor fab project and we have lined up other partners to set up India’s first foundry. We will continue to grow our Semiconductor team, and we have the license for production-grade technology for 40 nm from a prominent Integrated Device Manufacturer (IDM),” Vedanta said.
(With agency inputs)
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