New Delhi: Foxconn on Monday said it is withdrawing from the Joint Venture (JV) with Vedanta to establish a Semiconductor plant in Gujarat – PM Narendra Modi’s home state.
Foxconn and Vedanta both are new to Semiconductor technology. Despite this they signed a $19.5 deal in September 2022 to set up the semiconductor and display production plants in Gujarat.
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.
Taiwan based Foxconn is billed as world's largest contract electronics maker.
Foxconn and Vedanta were looking for a technology partner. They however struggled because they did not have prior experience in the field.
According to Reuters, Vedanta-Foxconn got on board STMicro for licensing technology, but the government had made clear it wants the European chipmaker to have "more skin in the game", such as a stake in the partnership.
Though industry experts termed the development a “huge blow”, Deputy IT minister Rajeev Chandrasekhar said Foxconn's decision had "no impact" on India's plans, adding that both companies were "valued investors" in the country.
Meanwhile, NDTV citing its sources claimed that Foxconn and Vedanta both have found new partners.
Vedanta has earlier in the day asserted that it is fully committed to its semiconductor project and has lined up other partners to set up India's first foundry, according to PTI.
"Vedanta reiterates that it is fully committed to its semiconductor fab project and it has lined up other partners to set up India’s first foundry.”
“The company will continue to grow its Semiconductor team, and it has the license for production-grade technology for 40 nm from a prominent Integrated Device Manufacturer (IDM)," Vedanta said in a statement.
Shiv Sena (UBT) leader Aditya Thackeray meanwhile slammed the government after Foxconn ended its deal with Vedanta.
“This is a loss for India. Maharashtra could have propelled this growth story for India,” said Thackeray, who has been aggressive over the issue since Vedanata's announcement to set up the plant in Gujarat.
Foxconn-Vedanta was originally planned to setup in Talegaon near Pune. The project was however shifted from Maharashtra to Gujarat barely few months before the assembly elections in PM Modi’s home state.
For all the latest News, Opinions and Views, download ummid.com App.
Select Language To Read in Urdu, Hindi, Marathi or Arabic.
