Foxconn has left its partnership with Vedanta and their $19.5 billion project to manufacture semiconductors in India. In a statement, Foxconn said that both parties agreed to part ways after recognizing that the project was not moving fast enough. Gaps that proved too difficult to overcome and external issues were cited as reasons for the break. Foxconn insisted that it is committed to India and “looks forward to growing alongside India’s nascent semiconductor industry.”
In a quote from their release, Foxconn stated, “We have seen some media reports portraying Foxconn’s withdrawal from the joint venture with Vedanta as a negative example of the Group’s investment integrity. That is absolutely not the case. When Foxconn course corrects, it is done only after heavy considerations on the near-term impact to our stakeholders, and on the long-term corporate health to the Group and our shareholders. “
According to Reuters, Vedanta will proceed ahead, entering the chip market later on this year. Vedanta claims that it has already lined up partners for the endeavor. The Associated Press is reporting that India is offering large financial incentives to help increase chip manufacturing. These incentives include up to 50% of project costs under a $10 billion plan for semiconductor and display manufacturing projects.
In a recent tweet, Rajeev Chandrasekhar, junior minister for Electronics and Information Technology, said “Both Foxconn n Vedanta have significant investments in India and are valued investors who are creating jobs n growth. Its not for govt to get into why or how two private companies choose to partner or choose not to, but in simple terms it means both companies can & will now pursue their strategies in India independently, and wth appropriate technology partners in Semicon n Electronics.”
