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Vedanta and Foxconn had signed agreements in September 2022 to invest $19.5 billion
New Delhi:
Taiwan’s Foxconn has withdrawn from a $19.5 billion chip-making joint venture with Vedanta. Both have no prior semiconductor experience or technology, and were expected to source it from a technology partner, Union Minister Rajeev Chandrasekhar said.
A 5-point explainer on the now-scrapped Vedanta-Foxconn JV
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Vedanta and Foxconn had signed agreements in September 2022 to invest $19.5 billion to set up semiconductor and display production plants in Gujarat, the home state of Prime Minister Narendra Modi.
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In May this year, the joint venture was reported to be “struggling” to tie up with a technology partner since Foxconn and Vedanta had no semiconductor experience.
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Vedanta-Foxconn got on board STMicro for licensing technology, but the government had made clear it wants the European chipmaker to have “more skin in the game”, such as a stake in the partnership, news agency Reuters reported in May.
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The capital markets regulator SEBI last month fined Vedanta for breaching disclosure rules by publishing a press statement that made it appear it partnered with Foxconn to make semiconductors in India, as the deal was with Vedanta’s holding company.
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The joint venture comes to an end. Vedanta said it is committed to its semiconductor project and has lined up other partners to set up India’s first foundry.
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