Foxconn eyes partner for new chip venture
New Delhi: A day after withdrawing from the $19.5 billion joint venture (JV) with Vedanta, the world’s largest contract manufacturer Foxconn said it remains committed to building India’ssemiconductor ecosystem and will begin afresh with new partners. In a statement Foxconn said it has initiated talks with both Indian as well as global companies for a potential partnership and will resubmit its application to the government under the Modified Programme for Semiconductors and Display Fab Ecosystem policy.
Foxconn, which manufactures iPhones for Apple, said it will bring in new partners and is exploring partnerships that would better fit its way of functioning. On its decision to pull out of the JV with Vedanta, the company said the project was not moving fast enough.
“We are actively reviewing the landscape for optimal partners. We welcome a diverse set of stakeholders, both in India and abroad, who want to see India get to the next level, and complement our world-class supply chain management and manufacturing efficiency." According to Hon Hai Technology Group, better known as Foxconn the world over, said challenging gaps with Vedanta could not be solved.
Besides ‘external issues unrelated to the project’ also led to its decision of not proceeding further with the proposed plans. Calling its decision to pull away from the project a ‘course correction’ it said the decision was taken after careful consideration on near-term impact to all stakeholders, as well as the long-term corporate health of the group and its shareholders.
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