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Foxconn Vedanta Deal: A setback to the plan to make chips in India at a cost of 1.5 lakh crores; Foxconn backed out

Pankaj Prasad
Foxconn Vedanta Deal
Foxconn Vedanta Deal

Foxconn said on Monday that it has decided to withdraw from its semiconductor joint venture with Indian conglomerate Vedanta.

Foxconn said on Monday that it has decided to withdraw from its semiconductor joint venture with Indian conglomerate Vedanta. Foxconn said it is working to remove the Foxconn name from Vedanta's wholly owned subsidiary.

Foxconn said – will not pursue joint venture with Vedanta

Hon Hai Technology Group (Foxconn) said, "Foxconn has no affiliation with this entity and attempts to retain its original name will cause confusion for future stakeholders." Global contract-based electronics maker Foxconn and Vedanta last year signed an agreement to set up semiconductor and display manufacturing plants in Gujarat with an investment of about Rs 1.5 lakh crore. In a statement on Monday, Foxconn said, "As per the mutual agreement to explore more diversified growth opportunities, Foxconn has decided not to pursue the joint venture with Vedanta.

Support to Make in India campaign will continue: Foxconn

For more than a year, Hon Hai Technology Group (Foxconn) and Vedanta have worked hard to bring the idea of semiconductor manufacturing in India to reality, the statement said. It has been a useful experience that will strengthen both the companies going forward. The company said, "Foxconn is confident of the growth potential of the semiconductor sector in India. We will continue to strongly support the government's 'Make in India' campaign and partner with diverse local partners to meet the needs of stakeholders." Will keep working with."

The deal was done in September last year

Explain that on September 13 last year, an MoU was signed between the government, Indian company Vedanta and electronics manufacturing giant Foxconn Group in Gandhinagar, Gujarat. During that time Union Minister Ashwini Vaishnav and Gujarat Chief Minister Bhupendra Patel were present. During that time Gujarat CM Bhupendra Patel had said that both the companies would invest Rs 1,54,000 crore to set up units in Gujarat. This will create one lakh jobs in the state.

Union Minister said - India's goals in the field of semiconductor manufacturing will not be affected

Union Electronics and Technology Minister Rajiv Chandrasekhar has reacted to Foxconn's withdrawal from the agreement with Vedanta. He tweeted, "Foxconn's decision to withdraw from its JV with Vedanta will have no impact on its goals in India's semiconductor sector." The Union Minister said that the breakup of the agreement between Foxconn and Vedanta should not be viewed in a wrong light. He said that it is not right to question the actions of India and PM Modi.

Vedanta bid – second partner ready, will fulfill PM Modi's vision

Vedanta also responded after Taiwanese electronics contract manufacturer Foxconn pulled out of its joint venture for chip manufacturing. The company on Monday said it is fully committed to its semiconductor project and has roped in other partners to set up India's first chip manufacturing facility. Vedanta said it has redoubled efforts to fulfill Prime Minister Narendra Modi's vision for semiconductor manufacturing. The company affirms that India remains critical in reshaping global semiconductor supply chains. Vedanta said in a statement, "The company reiterates that it remains fully committed to its semiconductor fab project and we have roped in other partners to set up India's first foundry. We will continue to grow our semiconductor team and We have licensed production-grade technology for 40 nm from a leading Integrated Device Manufacturer (IDM).

Company bid- India's role is important in the matter of semiconductor manufacturing

The company had announced plans to set up its chip plant in Gujarat with an investment of around Rs 1.5 lakh crore. However, its joint venture partner Foxconn has announced its withdrawal from the project. "We will soon be getting the license for production-grade 28nm as well. Vedanta has redoubled its efforts to fulfill the Prime Minister's vision for semiconductors," the company said in its statement. Vedanta said, "India's role in reshaping global semiconductor supply chains is critical."