Foxconn Pulls Out of $19 Billion Chipmaking Project in India
Foxconn has decided to withdraw from a $19.4 billion joint venture with Vedanta to build a chip factory in India, dealing a blow to the country’s ambitions of becoming a tech manufacturing powerhouse.
The Taiwanese tech giant, known for its role as a top supplier for Apple, cited a “mutual agreement” as the basis for its decision, allowing them to explore other development opportunities, while the joint venture will now be fully owned by Vedanta.
Although Foxconn expressed its commitment to investing in Indian chipmaking and applying for government subsidies, it acknowledged challenges and external issues that hindered the progress of the project.
Since the initial announcement in February 2022, Foxconn had collaborated with Vedanta on plans for the semiconductor plant, but specific investment figures were not provided.
Despite this setback, Foxconn CEO Young Liu has been seeking new partnerships in India, as the company aims to diversify its supply chains beyond China, where it already has factories.
Indian government officials maintain that Vedanta and Foxconn remain committed to the semiconductor mission, and the decision allows both companies to independently pursue their strategies in India.
The joint venture’s termination is seen as a setback for India’s efforts to attract more manufacturing investment and address unemployment.
Foxconn’s shares rose in Taipei following the announcement, while Vedanta’s shares fell in Mumbai.
In recent times, other tech companies, including US chipmaker Micron, have announced plans to expand production in India, contributing to the country’s semiconductor industry growth.
