Foxconn issues list of FAQs on why it parted ways with Vedanta and its future plans for India
Taiwan's Foxconn plans to apply for incentives under India's semiconductor manufacturing plan after ending its $19.5bn chipmaking joint venture with Vedanta. Foxconn said it remains committed to investing in India
PremiumTaiwan's Foxconn said it intends to apply for incentives under India's semiconductor manufacturing plan, a day after parting ways with Vedanta on a $19.5 billion chipmaking joint venture. Foxconn withdrew from the JV with Indian metals-to-oil conglomerate Vedanta on Monday.
The Taiwanese electronics manufacturing giant said it has been actively reviewing the landscape for optimal partners. The comment assumes significance as Foxconn has pulled out from the $19.5 billion semiconductor JV with Vedanta.
Pledging its commitment to India, Foxconn said it "is working toward submitting an application related to Modified Programme for Semiconductors and Display Fab Ecosystem."
Foxconn said it sees the country successfully establishing a robust semiconductor manufacturing ecosystem. "It will take time. Foxconn first entered India in 2006 and we are still here. The group looks forward to growing alongside India's nascent semiconductor industry," it said.
Here are some of the Frequently Asked Questions(FAQs) which were answered by Foxconn:
Has Foxconn lost confidence in India’s semiconductor ambitions?
Foxconn is committed to India and sees the country successfully establishing a robust semiconductor manufacturing ecosystem. It will take time. Foxconn first entered India in 2006 and we are still here. The Group looks forward to growing alongside India’s nascent semiconductor industry.
Foxconn has sound channels of communications with government stakeholders across India, and we have been consistent and clear with them at all levels about our continued commitment to invest in India.
Why did Foxconn and Vedanta part ways?
Both parties mutually agreed to part ways. This is not a negative. There was recognition from both sides that the project was not moving fast enough, there were challenging gaps we were not able to smoothly overcome, as well as external issues unrelated to the project.
We have seen some media reports portraying Foxconn’s withdrawal from the joint venture with Vedanta as a negative example of the Group’s investment integrity. That is absolutely not the case. When Foxconn course corrects, it is done only after heavy considerations on the near-term impact to our stakeholders, and on the long-term corporate health to the Group and our shareholders.
Building fabs from scratch in a new geography is a challenge, but Foxconn is committed to invest in India. We have been working on challenges like this since the 1980s. Foxconn has no intention to do anything but continue to strongly support the government’s “Make In India" ambitions and establish a diversity of local partnerships that meet the needs of stakeholders.
Does Foxconn have to write down losses related to the joint venture with Vedanta?
No. Foxconn has not injected capital or fixed assets into the JV.
What are your plans going forward?
Foxconn is working toward submitting an application related to the “Modified Programme for Semiconductors and Display Fab Ecosystem." We have been actively reviewing the landscape for optimal partners. We welcome a diverse set of stakeholders, both inside India and abroad, who also want to see India get to the next level and can complement Foxconn’s world-class supply chain management and manufacturing efficiency.
We understand there is a lot of interest in Foxconn’s plans and India’s information ecosystem is porous. However, due to the competitive and sensitive issues involved in negotiating large scale investments, Foxconn is unable to disclose more information at this time.
*With inputs from agencies
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
