Reports out of India suggest Taiwanese contract manufacturing firm Foxconn is reportedly looking for partnerships with large Indian business houses to support its semiconductor manufacturing ambitions in India. However, its year-old joint venture with the Vedanta Group, aimed at establishing a semiconductor fabrication unit in Gujarat, is facing difficulties due to differences between the two partners. The Indian government has expressed concerns about the financial stability of the Vedanta Group and has suggested Foxconn consider partnering with a different entity. The Foxconn-Vedanta joint venture (JV) has ambitious plans for display manufacturing in India.
The Vedanta Group has been facing its own challenges in finances and its inability to secure traditional sources of funding. Foxconn has initiated informal discussions with other potential Indian corporate partners, but the talks are still at an early stage. The government will evaluate any proposed partnerships before making a decision. Meanwhile, Vedanta maintains that its partnership with Foxconn remains intact, but there has been limited contact between the two partners. Disagreements also exist regarding changes to their application for government incentives under the Indian Semiconductor Mission (ISM).