Vedanta and Foxconn terminated their joint venture to make semiconductors in India by “mutual agreement” to “explore more diverse development opportunities,” the Taiwanese component maker said Monday.
Hon Hai Technology Group (Foxconn) and Anil Agarwal-led Vedanta had announced their joint venture to manufacture chips and display panels in India in February 2022, making it one of the first few participants in the government’s strategically crucial India Semiconductor Mission.
Vedanta said Monday it had “lined up other partners to set up India’s first (chip) foundry”.
ET had reported June 26 that the joint venture was on shaky ground and that Foxconn had started sounding out other Indian conglomerates as potential partners to further its chip-making ambitions in the country.
Sources told ET that differences had cropped up between the two and also that the government had suggested Foxconn look for another partner.
“Foxconn is confident about the direction of India’s semiconductor development... and (it will) establish a diversity of local partnerships that meets the needs of stakeholders,” the Taiwanese company said.
The development won’t affect the government’s chip foundry ambitions, ministers said.
“Both the companies are committed to developing the semiconductor industry and supporting Make in India and there is no impact of the development on the Indian Semiconductor Mission,” Ashwini Vaishnaw, union minister for electronics and IT, told ET.
Rajeev Chandrasekhar, minister of state for electronics and IT, echoed Vaishnaw’s views. He highlighted their inability to source knowhow.
“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,” he said. “While their JV VFSL (Vedanta-Foxconn Semiconductors Ltd) had originally submitted a proposal for a 28 nm (nanometre) fab, they could not source an appropriate tech partner for that proposal.”
Sources told ET that there were major cultural differences in the approach of the two companies.
“They (Foxconn) are a very high-tech company focused on the Asia region and Vedanta is a resources company which is not necessarily focussed on such high-tech projects. That led to the differences in the approach they had for the plant,” a person close to the development told ET.
Read more at: https://economictimes.indiatimes.com/epaper/delhicapital/2023/jul/11/et-front/foxconn-vedanta-pull-the-plug-on-semiconductor-jv/articleshow/101648476.cms
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