In a setback to India’s ambitious plans to build domestic semiconductor manufacturing capacities, Taiwan’s Foxconn, officially known as Hon Hai Technology Group, has pulled out of a project in the country, the company said in a statement on Tuesday, July 11.
It said that in order to ‘progress with more diverse opportunities,’ it has terminated agreement with resource major, Vedanta Limited, its joint venture partner for the India project with effect from July 10, 2023.
Under the now terminated agreement, Foxconn-Vedanta were to construct a $19.5 billion worth semiconductor fabrication plant for production of 28-nanometre semiconductors.
However, Foxconn clarified that it is not pulling out of India completely but attempting ‘to establish a diversity of local partnerships that will meet requirement of various stakeholders.’
Vedanta in a statement not referring to the Foxconn statement said that “it will continue to build its own semiconductor team and has licenses for production grade 40 nanometer chips”.