Foxconn Pulls out of India's $19.5 Billion Vedanta Chip Project: Here’s the Full Story

India's efforts to manufacture chips have been temporarily hampered by Foxconn's decision to leave a joint venture in the semiconductor industry with Indian giant Vedanta. Foxconn stated it is "working to remove the Foxconn name from what is now a fully-owned Vedanta entity."

Foxconn's Vision 

Foxconn stated: "Hon Hai Technology Group has no affiliation with the entity, and efforts to maintain its original name will confuse future stakeholders." The worldwide manufacturer of contract electronics Foxconn and Vedanta, signed a contract last year to construct semiconductor and display manufacturing facilities in Gujarat at an estimated cost of Rs 1.5 lakh crore.

Is it a Mutual decision by Foxconn And Vedanta?

According to a mutual decision, the firm stated that Foxconn has decided not to proceed with the joint venture with Vedanta to investigate more varied development options. According to the release, Vedanta and Hon Hai Technology Group (Foxconn) have worked hard for over a year to realise a remarkable semiconductor innovation. It has been a profitable experience providing both businesses with a bright future.

"Foxconn is optimistic about the course taken by India's semiconductor industry. The statement stated that we will continue to vehemently support the government's 'Make In India' goals and forge various local alliances that cater to stakeholders' demands. Vedanta stated after the news that it is entirely committed to its semiconductor project and has lined up other partners to establish India's first foundry.

Vedanta's Vision

In a statement, Vedanta stated that it had intensified efforts to realise PM Modi's vision for semiconductors. It confirmed that India is crucial in realigning the world's semiconductor supply chains. We have lined up additional partners to establish India's first foundry, and Vedanta affirms its unwavering commitment to its semiconductor fab project. We have the licence for 40 nm production-grade technology from a well-known Integrated Device Manufacturer (IDM), and we plan to expand our semiconductor team, according to Vedanta.

Rajeev Chandrasekhar, the Union Minister of State for IT, tweeted that Foxconn's decision to leave their joint venture with Vedanta had no bearing on India's plans for semiconductor manufacturing. He claimed that both businesses continue to make significant investments in India and are respected investors supporting growth and job creation. The minister emphasised that it was not the responsibility of the Centre to delve into the factors influencing whether two private enterprises partnered or not.

Conclusion

In layman's words, he explained, "It means that both companies can and will now independently pursue their strategies in India, with suitable technology partners in Semicon and Electronics."