Foxconn exits $20-bn chip JV with Vedanta

NO IMPACT ON FAB PLANS: GOVT | Reaffirms support to make-in-India

- JATIN GROVER

TAIWAN'S FOXCONN ON Monday said it is pulling out of the $19.5 billion (around ₹1.6-trillion) semiconductor joint venture with Anil Agarwal's Vedanta Group. The JV was formed for setting up semiconductor and display production plants in Gujarat.

The partnership was among the first few proposals received by the government last year to start semiconductor manufacturing in India.

Communications and IT minister Ashwini Vaishnaw said that the development won't have any impact on the government's plan to develop India as a manufacturing destination for fabs.

"Whatever may be the differences between the two companies, the fact is that this won't affect our plans of developing India as a manufacturing base for semiconductors. Both the companies are committed to the semiconductor mission and their Make-in-India plans," Vaishnaw told FE.

Sources said that Foxconn and Vedanta will now probably look at manufacturing fabs in the country either on their own or through some other partners.

The Foxconn-Vedanta JV was not able to get a technology partner to chips, after make 28-nanometer which the government had recently reopened the application window for the ₹76,000-crore semiconductor incentive scheme, inviting fresh investors. In the revised scheme, Vedanta-Foxconn was asked to submit a fresh application for making less complex and cheaper 40nanometer chips.