Bhoomika Singh
In September 2022, the Gujarat government signed Memorandums of Understanding with the Anil Agarwal-led Vedanta Limited and Taiwan’s Foxconn for the establishment of a semiconductor and display manufacturing unit in the state with an investment of over Rs 1.54 lakh crore.
Additionally, a joint venture was signed, that had announced the setting up of India’s first electronic chip manufacturing unit in Gujarat.
However now, the Taiwanese electronics manufacturer Foxconn decided to pull out of Vedanta joint venture, and the minister of state for electronics and IT Rajeev Chandrasekhar says, this has no impact on India’s semiconductor fabrication plant goal.
Although, 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.
“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.
The minister said that both Foxconn and Vedanta have significant investments in India and are valued investors who are creating jobs and growth.
Reacting to the announcement of fall out of the JV, the company spokesperson of Vedanta says, “Vedanta reiterates that it is fully committed to its semiconductor fab project and we have lined up other partners to set up India’s first foundry. We will continue to grow our Semiconductor team, and we have the license for production-grade technology for 40 nm from a prominent Integrated Device Manufacturer (IDM).”
“We will shortly acquire a license for production-grade 28 nm as well. Vedanta has redoubled its efforts to fulfill the Prime Minister’s vision for semiconductors and India remains pivotal in repositioning global semiconductor supply chains,” he added.
