Taiwanese electronics manufacturer Foxconn’s decision to pull out of Vedanta joint venture has no impact on India’s semiconductor fabrication plant goal, minister of state for electronics and IT Rajeev Chandrasekhar said. “This decision of Foxconn to withdraw from its JV wth Vedanta has no impact on India’s Semiconductor Fab goals. None,” Chandrasekhar tweeted.
Taiwan’s Foxconn has withdrawn from a $19.5 billion semiconductor joint venture with mining baron Anil Agarwal’s Vedanta Ltd. The announcement comes as the venture struggled to get a technology partner to make chips that are used in mobile phones to refrigerators and cars. In a statement, Foxconn said it “has determined it will not move forward on the joint venture with Vedanta.” Agarwal’s metals-to-oil conglomerate responded saying it was “fully committed to its semiconductor fab project and we have lined up other partners to set up India’s first foundry.” Foxconn is best known for assembling iPhones and other Apple products. The minister said that both Foxconn and Vedanta have significant investments in India and are valued investors who are creating jobs and growth. Foxconn statement said that for over a year, Hon Hai Technology Group (Foxconn) and Vedanta have worked hard to bring a great semiconductor idea to reality. It has been a fruitful experience that can position both companies strongly going forward.
Here’s what the minister said in the tweet:
* This decision of Foxconn to withdraw from its JV with Vedanta has no impact on India’s #Semiconductor Fab goals. None.
* Both Foxconn n Vedanta have significant investments in India and are valued investors who are creating jobs n growth.
* It was well known that both companies had no prior semicon experience or Technology and were expected to source Fab tech from a Tech partner.
* While their JV VFSL had originally submitted a proposal for 28nm fab, they could not source appropriate Tech partner for that proposal.
* Vedanta thru VFSL has recently submitted a 40nm fab proposal backed by Tech licensing agreement from a Global Semicon major – which is currently being evaluated by
@Semicon_India
Tech Advisory group.
* Its not for govt to get into why or how two private companies choose to partner or choose not to, but in simple terms it means both companies can & will now pursue their strategies in India independently, and wth appropriate technology partners in Semicon n Electronics
*India’s strategy of catalyzing Semiconductor Ecosystem has seen rapid progress in the 18 months since PM
@narendramodi
ji approved Indias Semicon strategy n policy.
* To those editorializing abt this decision of Foxconn/Vedanta being a “blow” to Indias Semicon ambition , I can only say its a bad idea to bet against India under PM Modi 😁🤷♂️
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