Foxconn Quits $19 Billion Partnership With Vedanta In India

Taiwan’s Foxconn has withdrawn from a $19.5 billion chip-making joint venture with Vedanta. Both have no prior semiconductor experience or technology, and were expected to source it from a technology partner, Union Minister Rajeev Chandrasekhar said.

Vedanta and Foxconn had signed agreements in September 2022 to invest $19.5 billion to set up semiconductor and display production plants in Gujarat, the home state of Prime Minister Narendra Modi.

In May this year, the joint venture was reported to be “struggling” to tie up with a technology partner since Foxconn and Vedanta had no semiconductor experience.

Vedanta-Foxconn got on board STMicro for licensing technology, but the government had made clear it wants the European chipmaker to have “more skin in the game”, such as a stake in the partnership, news agency Reuters reported in May.