NEW DELHI: Taiwanese electronics manufacturer Foxconn (2317.TW) announced on Monday that it has withdrawn from a joint venture with Indian conglomerate Vedanta (VDAN.NS), delivering a setback to Indian Prime Minister Narendra Modi’s chip-making ambitions.
The timeline below outlines the key events since the signing of the $19.5 billion joint venture:
Feb. 14, 2022: Foxconn partners with Vedanta to establish semiconductor manufacturing facilities in India, aiming to diversify its business and boost domestic electronics manufacturing in the country.
Sept. 14, 2022: Anil Agarwal, Chairman of Vedanta, expresses confidence that the joint venture will not face funding issues.
May 19, 2023: Deputy IT Minister Chandrasekhar discloses to Reuters that the joint venture is encountering difficulties in securing a technology partner.
May 31, 2023: Reuters reports that talks to involve STMicroelectronics (STMPA.PA) in the Vedanta-Foxconn joint venture have reached an impasse. The Indian government had expressed its desire for STMicro to have a stake in the partnership, but discussions failed to progress.
June 30, 2023: India’s market regulator fines Vedanta for violating disclosure rules by publishing a press release suggesting a partnership with Foxconn for semiconductor manufacturing in India. The deal was actually with Vedanta’s holding company.
July 10, 2023: Foxconn announces its withdrawal from the Vedanta chip joint venture without providing a specific reason. The company states that it had collaborated on the project for over a year but mutually decided with Vedanta to terminate the joint venture.
Foxconn’s Decision a Set Back to India
Foxconn’s decision to withdraw from the Vedanta chip joint venture comes as a setback to the Indian government’s efforts to boost domestic semiconductor manufacturing. The move raises questions about the challenges faced by international companies entering India’s semiconductor industry and the complexities of forming successful partnerships in the sector.
The withdrawal of Foxconn from the joint venture highlights the importance of addressing regulatory and partnership hurdles to attract foreign investments and foster the growth of India’s semiconductor ecosystem.
