As iPhone maker Foxconn dumps $19.5 billion Vedanta chip plan in India, a look at timeline since signing of JV | Mint
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Business News/ Companies / News/  As iPhone maker Foxconn dumps $19.5 billion Vedanta chip plan in India, a look at timeline since signing of JV
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As iPhone maker Foxconn dumps $19.5 billion Vedanta chip plan in India, a look at timeline since signing of JV

Taiwan's Foxconn has withdrawn from a $19.5 billion semiconductor joint venture with Indian conglomerate Vedanta, in a setback to Prime Minister Modi's chipmaking plans for India.

The company said it had worked with Vedanta for more than a year to bring 'a great semiconductor idea to reality' but they had mutually decided to end the joint venture and it will remove its name from an entity that is now fully owned by Vedanta. (REUTER)Premium
The company said it had worked with Vedanta for more than a year to bring 'a great semiconductor idea to reality' but they had mutually decided to end the joint venture and it will remove its name from an entity that is now fully owned by Vedanta. (REUTER)

Taiwan's Foxconn has withdrawn from a $19.5 billion semiconductor joint venture with Indian metals-to-oil conglomerate Vedanta, it said on Monday in a setback to Prime Minister Narendra Modi's chipmaking plans for India.

Foxconn, the world's largest contract electronics maker, and Vedanta signed a pact last year to set up semiconductor and display production plants in Modi's home state of Gujarat.

Here is a timeline of how events have unfolded since the signing of the $19.5 billion joint venture:

Feb. 14, 2022: Foxconn partners with Vedanta to make semiconductors in India in a bid to diversify its business. Foxconn said it will be "a significant boost to domestic manufacturing of electronics in India".

Sept. 13, 2022: Vedanta and Foxconn sign pacts to invest $19.5 billion to set up semiconductor and display production. Modi's home state Gujarat is selected for the facilities.

Sept. 14, 2022: Vedanta's Anil Agarwal says the Indian metals-to-oil conglomerate does not see funding problems for the JV.

May 19, 2023: Deputy IT minister Chandrasekhar tells Reuters the JV "struggling" to tie up with a technology partner.

May 31, 2023: Reuters reports that Vedanta-Foxconn JV proceeding slowly as talks to involve STMicroelectronics are deadlocked. Vedanta-Foxconn had got on board STMicro for licensing technology, but India's government had made clear it wants the European chipmaker to have "more skin in the game", such as a stake in the partnership, a source with direct knowledge of the matter said.

June 30, 2023: India market regulator fines Vedanta for breaching disclosure rules by publishing a press release that made it appear it had partnered with Foxconn to make semiconductors in India, as the deal was with Vedanta's holding company.

July 10, 2023: Foxconn drops Vedanta chip JV, without specifying a reason. "Foxconn has determined it will not move forward on the joint venture with Vedanta," it said, saying it had worked for more than a year on the project but the two sides had mutually decided to end the JV.

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Published: 10 Jul 2023, 06:47 PM IST
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