Foxconn, the Taiwan-based Hon Hai Technology Group, has announced its withdrawal from a joint venture with the Vedanta Group. The decision was made in order to explore other development opportunities, according to a mutual agreement. The joint venture aimed to invest in a semiconductor fabrication plant in Gujarat, India, with a focus on manufacturing 28-nanometer semiconductors. Despite pulling out of the joint venture, Foxconn clarified that it remains committed to supporting India’s semiconductor industry and the government’s Make in India program.
The announcement comes after reports of uncertainty surrounding the joint venture, specifically regarding the government’s requirements for technology transfer and investment from European firm STMicroelectronics. While Foxconn’s departure from the partnership raises questions, Minister for Electronics and Information Technology Ashwini Vaishnaw stated on Twitter that both Foxconn and Vedanta are still dedicated to India’s semiconductor mission and Make in India program.
Both the companies Foxconn and Vedanta are committed to India’s semiconductor mission and Make in India program.
— Ashwini Vaishnaw (@AshwiniVaishnaw) July 10, 2023
Vedanta, in a separate statement, expressed its commitment to the semiconductor industry and mentioned plans to continue growing its Semiconductor team. The company has obtained a license for production-grade technology for 40-nanometer chips from a prominent Integrated Device Manufacturer (IDM). Vedanta emphasized the significance of India in reshaping global semiconductor supply chains.
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Despite the withdrawal, Minister of State for Electronics and Information Technology Rajeev Chandrasekhar assured that Foxconn’s exit would not impact India’s semiconductor goals. He stated that the government does not interfere in private companies’ decisions to partner or not, but both Foxconn and Vedanta can pursue their strategies independently and with appropriate technology partners in the semiconductor and electronics sectors.
It is worth noting that the Indian government recently announced plans for a $2.7 billion semiconductor assembly, packaging, and testing plant to be built in India by Micron, a U.S.-headquartered firm. Other semiconductor proposals under the production-linked incentive scheme are currently under review.
Despite the setback, India remains determined to strengthen its position in the semiconductor industry and attract investments to bolster domestic chip-making capabilities.
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