Last Updated: July 10, 2023, 17:02 IST
Vedanta will probably be dealt an enormous blow with this resolution
Taiwan’s Foxconn stated on Monday it has withdrawn from a $19.5 billion three way partnership with Indian metallic-metal conglomerate Vedanta.
BENGALURU:Taiwan’s Foxconn stated on Monday it has withdrawn from a $19.5 billion three way partnership with Indian metals-to-oil conglomerate Vedanta, in a setback to Prime Minister Narendra Modi’s chipmaking plans for India.
Foxconn, which didn’t say why it had taken the choice, and Vedanta signed a pact final yr to arrange semiconductor and show manufacturing vegetation in Modi’s house state of Gujarat.
“Foxconn has determined it will not move forward on the joint venture with Vedanta. Foxconn is working to remove the Foxconn name from what now is a fully-owned entity of Vedanta,” it stated in a press release.
Modi has made chipmaking a high precedence for India’s financial technique in pursuit of a “new era” in electronics manufacturing” and Foxconn’s move represents a blow to his ambitions of luring foreign investors to make chips locally for the first time.
Vedanta didn’t instantly reply to a request for remark.
Reuters has previously reported that Modi’s plan was in trouble, with the Vedanta-Foxconn project proceeding slowly as their talks to involve European chipmaker STMicroelectronics as a partner were deadlocked.
Vedanta-Foxconn had got STMicro on board for licensing technology, but India’s government had made clear it wanted the European company to have more “pores and skin within the recreation”, such as a stake in the partnership.
STMicro was not keen on that and the talks remained in limbo, a source had previously said.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)
