Chip maker Foxconn exits a semiconductor joint venture with Indian mining company Vedanta

abcnews.go.com:

Apple iPhone manufacturer Foxconn has announced it is backing out of a $19.5 billion semiconductor joint venture with Indian mining conglomerate Vedanta Ltd

NEW DELHI — Electronics giant Foxconn backed out of a $19.5 billion semiconductor joint venture with Indian mining conglomerate Vedanta Ltd. due to “external issues unrelated to the project,” it says, in a potential setback for Prime Minister Narendra Modi's ambitions to build a chipmaking industry.

Hon Hai Technology, known internationally as Foxconn, and Vedanta Limited announced their joint venture to manufacture chips and display panels in India in February 2022. On Monday, Foxconn announced it had mutually agreed to part ways with Vedanta Limited.

«This is not a negative. There was recognition from both sides that the project was not moving fast enough, there were challenging gaps we were not able to smoothly overcome, as well as external issues unrelated to the project,” Taiwan-based Foxconn said in a statement Tuesday.

Vedanta said it has lined up other partners to set up India’s first semiconductor foundry to create the chips that are used in mobile phones, refrigerators and cars.

Prime Minister Narendra Modi’s government has made building a chipmaking sector a national priority as part of a self-reliance policy to secure stable supplies. It is offering financial incentives of up to 50% of project costs under a $10 billion plan for semiconductor and display manufacturing projects.

India’s government leaders say they aren’t too worried about the impact.

Minister of Electronics and Information Technology Ashwini Vaishnaw said both companies are committed to India’s semiconductor mission, part of the country's Make in India program to foster domestic