Foxconn's Withdrawal From Vedanta Chip JV Has No Impact On India's Semiconductor Fab Goals: MoS IT

The recent decision by Foxconn, the Taiwanese multinational electronics contract manufacturer, to scrap its $19.5 billion investment plan with Vedanta Limited for a chip manufacturing joint venture has raised concerns about India's semiconductor fab goals.

Rajeev Chandrasekhar, India's state minister for electronics and IT, said on Monday that Foxconn's decision to leave the Vedanta joint venture had no effect on the country's ambition of building semiconductor production plants, PTI reported.

"This decision of Foxconn to withdraw from its JV wth Vedanta has no impact on India's Semiconductor Fab goals. None," Chandrasekhar tweeted.

The first electronic chip production facility in India would be located in Gujarat, according to a Vedanta Foxconn JV announcement.

"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.

According to the minister, Vedanta and Foxconn are respected investors who are generating growth and jobs in India through their substantial investments.

"It was well known that both companies had no prior semicon experience or Technology and were expected to source Fab tech from a Tech partner. While their JV VFSL had originally submitted a proposal for 28nm fab, they could not source an appropriate Tech partner for that proposal," the minister said.

He stated that the government's Semicon India Tech Advisory Council is currently evaluating a 40 nm fab proposal made by Vedanta through JV VFSL, which is supported by a technology licensing agreement from a Global Semicon major.