Taiwanese semiconductor manufacturer, Foxconn, has backed out of its decision to form a Joint Venture (JV) with Vedanta Ltd. for setting up a semiconductor manufacturing facility in Gujarat. Foxconn’s statement on the matter dated 10th July 2023 said, “In order to explore more diverse development opportunities, according to mutual agreement, Foxconn has determined it will not move forward on the joint venture with Vedanta”.
Further, talking about their future plans in India, Foxconn said, “We will continue to strongly support the government’s ‘Make In India’ ambitions and establish a diversity of local partnerships that meet the needs of stakeholders”.
The two companies signed a Memorandum of Understanding (MoU) for this JV in February 2022. Vedanta-Foxconn JV was to invest a total of Rs. 1.54 lakh crore to develop this semiconductor manufacturing unit. This unit would have been India’s first semiconductor chipset manufacturing facility, which had been planned to come up in Gujarat’s Dholera Special Investment Region (SIR).
After Foxconn pulled out of the JV, Vedanta’s share price fell by about 3% on 11th July 2023. Vedanta stated on 10th July 2023 to the press that it had other potential partners lined up for setting up its semiconductor manufacturing facility.