Foxconn Update: India is looking to tap into semiconductors used in electric vehicles and other products. But this dream of Indian government has got a break. Meconductor manufacturing company Foxconn has announced termination of its contract with Vendata to manufacture semiconductors in India. Along with this, Gujarat has also been hit.
Last year, Vedanta and Foxconn jointly announced to set up a semiconductor and display manufacturing plant in Gujarat with an investment of $19.5 billion. With this, the Gujarat government was hoping to get huge income and employment to a large number of people. Along with the Indian government, the Gujarat government has also been hit by Foxconn’s decision.
This news has come to the attention of news agency Reuters. Foxconn issued a statement saying that Foxconn Vedanta, a wholly owned subsidiary, is working towards delisting its name. Foxconn said the company has decided not to proceed with the joint venture with Vedanta.
It was only last year when Vedanta revealed that it was running the project. The company later clarified that it is taking the Vulcan event project forward. Last week, stock market regulator Sebi announced a fine on Vedanta. Sebi said it was shown by the company that the company had entered into a partnership with Foxconn which was in violation of the rules. Last Friday, Vedanta said it would acquire the holding company of a joint venture that tied up with Foxconn to make semiconductors. The company said it will also acquire a display grass manufacturing venture from Vulcan Investments.
Last year, Anil Aggarwal’s Vedanta decided to tie up with Foxconn to set up a semiconductor and display manufacturing project in Gujarat. The Vedanta group was allowed financial and non-financial subsidies from the Government of Gujarat for setting up semiconductor plants, including capital expenditure and provision of cheap electricity.
Foxconn said that the company has full confidence in the direction of India’s semiconductor development plan. And the company fully supports the Make in India goals of the Government of India and will cater to the needs of stakeholders through local partnerships.
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