Taiwanese electronics giant Foxconn has officially announced its decision to withdraw from a joint venture with Vedanta, led by billionaire Anil Agarwal, for semiconductor manufacturing in India. The partnership, established last year with an investment of $19.5 billion, aimed to leverage India’s ambitions to become a major player in the electronics industry including display manufacturing.
Foxconn has expressed its intention to disassociate itself from the venture, emphasizing the need to remove its name from the entity, which is now fully owned by Vedanta. This move is aimed at avoiding confusion among future stakeholders, as Foxconn no longer has any connection to the joint venture. Despite withdrawing from the specific collaboration, Foxconn remains confident in India’s semiconductor development and continues to support the government’s “Make In India” initiative. The company has also expressed its commitment to establishing local partnerships that align with stakeholders’ needs.
Recently, Vedanta Group acquired complete ownership of the joint venture, known as Vedanta Foxconn Semiconductors Private Limited. This restructuring positions Vedanta as India’s first company in the Integrated Semiconductor and Display Fab Business, a business definition of its intent to continue its ambitious plans, this time as a core business in its portfolio of operations.
The initial agreement between Vedanta and Foxconn envisioned the establishment of a semiconductor and display manufacturing unit in Gujarat, with an estimated investment of 1.54 lakh crore rupees ($18.6 billion). Vedanta held a 60% equity stake in the joint venture, while Foxconn retained the remaining 40% as the technical partner. Vedanta, known for its expertise in oil and metals, financed the project as part of its diversification efforts into chip manufacturing.