Vedanta and Foxconn had signed agreements in September 2022 to invest $19.5 billion
Taiwan's Foxconn has withdrawn from a $19.5 billion chip-making joint venture with Vedanta.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.
A 5-point explainer on the now-scrapped Vedanta-Foxconn JV
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.
The capital markets regulator SEBI last month fined Vedanta for breaching disclosure rules by publishing a press statement that made it appear it partnered with Foxconn to make semiconductors in India, as the deal was with Vedanta's holding company.
The joint venture comes to an end. Vedanta said it is committed to its semiconductor project and has lined up other partners to set up India's first foundry.
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