Foxconn's exit from chip JV with Vedanta has no impact on India: MoS IT | Latest News India - Hindustan Times
close_game
close_game

Foxconn pulling plug on chip plant venture won't have impact on India's semiconductor goals: Govt

Jul 10, 2023 07:09 PM IST

Taiwanese company Foxconn has withdrawn from its chip joint venture with Vedanta, but India's semiconductor fabrication goals will not be affected, says MoS IT.

Following the withdrawal of Taiwanese electronic contract manufacturer Foxconn from its chip joint venture with Vedanta on Monday, Union Minister of State for Electronics & Technology said that India's semiconductor fabrication goals will remain unscathed by the company's departure.

Union minister of state for electronics and information technology, Rajeev Chandrasekhar. (File)
Union minister of state for electronics and information technology, Rajeev Chandrasekhar. (File)

“This decision of Foxconn to withdraw from its JV with Vedanta has no impact on India's Semiconductor fab goals. None,” MoS Rajeev Chandrasekhar tweeted.

Hindustan Times - your fastest source for breaking news! Read now.

Foxconn, the world's largest contract electronics maker, has decided to withdraw from a 1.5 lakh crore semiconductor joint venture with Indian metals-to-oil conglomerate Vedanta. The companies had signed a pact last year to set up semiconductor and display production plants in Gujarat.

Vedanta and Foxconn will work independently: Chandrasekhar

“It's not for govt to get into why or how two private companies choose to partner or choose not to,” MoS Chandrasekhar said, adding that both the companies have significant investments in India and will now pursue their strategies independently.

Initially, the joint venture Vedanta-Foxconn Semiconductors (VFSL) had put forward a proposal for a 28nm fab, but they faced challenges in finding a suitable technology partner for that proposal. However, Vedanta, through VFSL, has recently submitted a proposal for a 40nm fab, which is supported by a tech licensing agreement with a prominent global semiconductor company. This proposal is currently under evaluation by the Tech Advisory group at Semicon India, the nodal agency to implement the Semicon India programme.

Loss for India, and Maharashtra: Aaditya Thackeray

Sena (UBT) MLA Aaditya Thackeray expressed his belief that the project was entirely feasible in Maharashtra and called on the Maharashtra government to explain the sudden shift to Gujarat. (READ HERE: As Foxconn dumps $19.5 bn chip plan, Uddhav camp's regret: ‘Maharashtra could have…’)

The deal had created a massive political controversy with opposition parties in Maharashtra crying foul over the deal saying that Maharashtra was the priority of the investors.

Thackeray, who has been actively vocal about the issue since Vedanta's announcement to establish the plant in Gujarat, said, "This is a loss for India, and Maharashtra could have been at the forefront of this growth story for the country."

However, in response to the criticism, MoS Chandrasekhar countered by saying, "To those editorialising about this decision of Foxconn/Vedanta being a "blow" to India's Semicon ambition, I can only say its a bad idea to bet against India under PM Modi. India is just getting started…"

ALSO READ: How Maharashtra, Gujarat offers to Vedanta-Foxconn project differed

Vedanta says it has secured other partners

Meanwhile, Vedanta reaffirmed its strong commitment to the semiconductor project and stated that it has secured other partners to establish India's first foundry. Vedanta emphasized its dedication to fulfilling Prime Minister Narendra Modi's vision for semiconductors and asserted that India plays a crucial role in reshaping global semiconductor supply chains.

"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)," Vedanta said in a statement.

Unveiling 'Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch Now!
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Monday, February 26, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On