Foxconn withdraws from JV for chip manufacture, Vedanta to go ahead: No impact on India’s chip dream

In what appeared to be a serious setback to Prime Minister Narendra Modi’s plans of constructing India a chip-manufacturing hub, Taiwanese chip-making large Foxconn on Monday introduced that it has withdrawn from a three way partnership with India-based industrial large Vedanta.

Foxconn was supposed to execute a $19.5 billion semiconductor three way partnership with metals to oil conglomerate Vedanta.

Foxconn and Vendanta had signed a MoU in 2022 to set up semiconductor and show manufacturing components in Gujarat, the house state of PM Modi.

“Foxconn has decided it won’t transfer ahead on the three way partnership with Vedanta,” the corporate mentioned in a press release, with out elaborating over the matter.

It maintained that the withdrawal matter is settled between the 2 firms.

However, Vedanta mentioned it’s going to go forward with the undertaking.

“Vedanta reiterates that it’s absolutely dedicated to its semiconductor fab undertaking and we’ve lined up different companions to arrange India’s first foundry. We will proceed to develop our Semiconductor staff, and we’ve the license for production-grade know-how for 40 nm from a outstanding Integrated Device Manufacturer (IDM).

“We will shortly purchase a license for production-grade 28 nm as nicely. Vedanta has redoubled its efforts to fulfill the Prime Minister’s imaginative and prescient for semiconductors and India stays pivotal in repositioning world semiconductor provide chains,” an organization spokesperson mentioned.

No impact on India’s chip dream

The authorities on Monday mentioned that the choice of Taiwanese large Foxconn to withdraw from its semiconductor three way partnership (JV) with Vedanta has no impact on India’s semiconductor objectives.

Both Foxconn and Vedanta have important investments in India and are valued traders who’re creating jobs and progress, mentioned Union Minister of State for Electronics and IT Rajeev Chandrasekhar.

“It was well-known that each firms had no prior semiconductor expertise or know-how and had been anticipated to supply Fab tech from a tech companion,” he mentioned in a tweet.

While their JV VFSL had initially submitted a proposal for 28nm fab, “they might not supply acceptable Tech companion for that proposal,” the minister knowledgeable.

Earlier, the Taiwanese chip-making large introduced that it has withdrawn from a three way partnership with India-based industrial large Vedanta.

Foxconnwas supposed to execute a $19.5 billion semiconductor three way partnership with metals to oil conglomerate Vedanta.

Foxconn and Vendanta had signed a MoU in 2022 to set up semiconductor and show manufacturing components in Gujarat.

“Foxconnhas decided it won’t transfer ahead on the three way partnership with Vedanta,” the corporate mentioned in a press release, with out elaborating over the matter. It maintained that the withdrawal matter is settled between the 2 firms.

However, Vedanta mentioned it’s going to go forward with the undertaking.

“Vedanta reiterates that it’s absolutely dedicated to its semiconductor fab undertaking and we’ve lined up different companions to arrange India’s first foundry. We will proceed to develop our Semiconductor staff, and we’ve the license for production-grade know-how for 40 nm from a outstanding Integrated Device Manufacturer (IDM),” mentioned the corporate.

According to Chandrasekhar, Vedanta has just lately submitted a 40nm fab proposal backed by tech licensing settlement from a world semiconductor main, which is presently being evaluated by Semicon India Tech Advisory group.

“It will not be for the federal government to get into why or how two personal firms select to companion or select not to however, in easy phrases, it means each firms can and can now pursue their methods in India independently, and with acceptable know-how companions in Semicon and electronics,” mentioned the minister.

India is simply getting began on semiconductor manufacturing domestically, he added.

(With inputs from IANS)