Foxconn, Vedanta pull the plug on semiconductor JV

economictimes.indiatimes.com:

Vedanta and Foxconn terminated their joint venture to make semiconductors in India by “mutual agreement” to “explore more diverse development opportunities,” the Taiwanese component maker said Monday. Hon Hai Technology Group (Foxconn) and Anil Agarwal-led Vedanta had announced their joint venture to manufacture chips and display panels in India in February 2022, making it one of the first few participants in the government’s strategically crucial India Semiconductor Mission. Vedanta said Monday it had “lined up other partners to set up India’s first (chip) foundry”.

ET had reported June 26 that thejoint venture was on shaky ground and that Foxconn had started sounding out other Indian conglomerates as potential partners to further its chip-making ambitions in the country. Sources told ET that differences had cropped up between the two and also that the government had suggested Foxconn look for another partner. “Foxconn is confident about the direction of India’s semiconductor development… and (it will) establish a diversity of local partnerships that meets the needs of stakeholders,” the Taiwanese company said.

The development won’t affect the government’s chip foundry ambitions, ministers said. “Both the companies are committed to developing the semiconductor industry and supporting Make in India and there is no impact of the development on the Indian Semiconductor Mission,” Ashwini Vaishnaw, union minister for electronics and IT, told ET. Rajeev Chandrasekhar, minister of state for electronics and IT, echoed Vaishnaw’s views.