Foxconn withdraws from its JV with Vedanta; India says no impact on semiconductor goals

Business Tuesday 11/July/2023 08:59 AM
Foxconn withdraws from its JV with Vedanta; India says no impact on semiconductor goals

New Delhi: With Foxconn deciding to withdraw from its semiconductor joint venture (JV) with Indian mining conglomerate Vedanta, Union Minister of State for Electronics and Technology Rajeev Chandrasekhar has said that has no impact on India's semiconductor fabrication goals.

Anil Agarwal-led Vedanta Limited and Taiwan's Foxconn in September 2022 had signed MoUs with the Gujarat government for setting up a semiconductor and display manufacturing unit in the state with an investment of over Rs 1.54 lakh crore. They also signed a joint venture. "This decision of Foxconn to withdraw from its JV with Vedanta has no impact on India's Semiconductor Fab goals. None," Chandrasekhar said in a tweet on Monday.

The minister said both Foxconn and Vedanta have significant investments in India and are valued investors who are creating jobs and growth.

"It was well known that both companies had no prior semicon experience or Technology and were expected to source Fab tech from a Tech partner. While their JV VFSL had originally submitted a proposal for 28nm fab, they could not source appropriate Tech partner for that proposal," he said.

He said Vedanta thru VFSL has recently submitted a 40nm fab proposal backed by Tech licensing agreement from a Global Semicon major - which is currently being evaluated by a Tech Advisory Group.

"It is not for government 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 and will now pursue their strategies in India independently, and with appropriate technology partners in Semicon and Electronics," the minister said.

He said India's strategy of catalyzing Semiconductor Ecosystem has seen rapid progress in the 18 months since PM Narendra Modi approved India's semiconductor strategy and policy.

"To those editorializing about this decision of Foxconn/Vedanta being a 'blow' to India's Semicon ambition , I can only say it's a bad idea to bet against India under PM Modi. India is just getting started," he said.

India aims to become a global manufacturing hub and a major player in the semiconductor supply chain. The central government has taken several key initiatives to reduce the dependence on imports of electronic goods by giving impetus to domestic manufacturing of electronic, semiconductor products and components.