Foxconn to set up a semiconductor plant in Gujarat on a joint venture with Indian conglomerate Vedanta

Foxconn, a Taiwanese firm, announced on Monday that it would be withdrawing from a joint venture with Indian conglomerate Vedanta to establish a semiconductor plant in the western state of Gujarat.

Last year, Vedanta and Foxconn signed an agreement to invest $19.5 billion in setting up semiconductor and display production plants in an effort to help India become a major electronics hub.

In a statement, Foxconn stated that it is working to remove its name from the joint venture, which is now fully owned by Vedanta. The company emphasized that it has no connection to the entity and that efforts to retain its original name would create confusion for future stakeholders.

According to Foxconn, both companies have been working diligently for over a year to bring the semiconductor project to fruition. While it has been a fruitful experience, Foxconn has decided, based on mutual agreement, not to proceed with the joint venture with Vedanta in order to explore other diverse development opportunities.

Foxconn assured that it will continue to support India’s “Make in India” ambitions and establish local partnerships to meet stakeholders’ needs.

India’s junior IT and electronics minister, Rajeev Chandrasekhar, expressed optimism that Foxconn’s decision would have little to no impact on India’s semiconductor goals. He stated that both companies have significant investments in India and are valued investors who are creating jobs and contributing to growth.

Chandrasekhar further explained that Foxconn and Vedanta, lacking prior semiconductor experience or technology, were expected to source fab technology from a tech partner. However, they were unable to find an appropriate tech partner for their proposal to establish a 28nm fab.

Meanwhile, Vedanta reiterated its commitment to its semiconductor fab project after Foxconn’s withdrawal announcement. The company stated that it has lined up other partners to set up India’s first foundry and has acquired licenses for production-grade technology for 40nm and plans to acquire a license for production-grade 28nm as well.