Why Foxconn withdrawal from Vedanta JV will have no impact on India's semiconductor goals; govt explains

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Vedanta joint venture has no impact on India's semiconductor fabrication plant goal, minister of state for electronics and IT Rajeev Chandrasekhar said on Monday. "This decision of Foxconn to withdraw from its JV wth Vedanta has no impact on India's Semiconductor Fab goals. None," Chandrasekhar tweeted.

"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," Chandrasekhar tweeted. "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," the minister said.

While their JV VFSL had originally submitted a proposal for 28nm fab, they could not source an 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," the minister said. 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 Narendra Modi.