Foxconn announced that it will no longer be involved in a joint venture with Vedanta Ltd, originally established to produce semiconductors in India. In a statement, Foxconn stated that it has decided not to proceed with the joint venture with Vedanta, but did not provide further details on the reasons for this decision.
According to Foxconn, the company had been collaborating with Vedanta for over a year to bring a promising semiconductor project to fruition. However, both parties mutually agreed to terminate the joint venture, and Foxconn will remove its name from the entity, which will now be fully owned by Vedanta.
All About Foxconn-Vedanta Joint Venture
Foxconn, renowned for its assembly of iPhones and other Apple devices, has recently been diversifying its business by expanding into the chip manufacturing sector.
Last year, Foxconn and Vedanta signed an agreement to invest INR 1.54 lakh crore in the establishment of semiconductor and display production plants in Gujarat, capitalizing on India’s ambitions to become a major player in the electronics industry. These plants were planned for the Dholera Special Investment Region near Ahmedabad, Gujarat.
The semiconductor facility was expected to receive significant subsidies and incentives, such as zero stamp duty on land purchase and subsidized water and electricity, under the ‘Gujarat Semiconductor Policy 2022-27.’
Although Vedanta-Foxconn had brought STMicro on board for technology licensing, the Indian government expressed the desire for the European company to have a greater stake in the partnership. However, STMicro was reluctant to proceed under those conditions, resulting in the discussions being stuck in a stalemate, as previously reported by Reuters.
Vedanta Group, led by Anil Agarwal, recently revealed its complete ownership acquisition of the semiconductor and display units previously held by its subsidiary, Twin Star Technologies. This strategic action establishes Vedanta as the pioneering company in India’s Integrated Semiconductor and Display Fab Business.
Vedanta emphasized that the manufacturing of semiconductors and display glass holds substantial potential for growth in India. The semiconductor market was valued at $24 billion in 2022 and is projected to reach $80 billion by 2026. Similarly, the display panel market is estimated to be worth $7 billion, with expectations of reaching $15 billion by 2025. Currently, India imports 100% of these requirements.
