On Monday, Taiwan’s Foxconn officially announced their plans to pull out of the 19.5 billion dollar joint venture with Indian company Vedanta. The venture was aimed at setting up India’s first semi-conductor manufacturing plant.
“Foxconn has determined it will not move forward on the joint venture with Vedanta,” said the company.
Last year, the two companies signed the 19.5 billion dollar contract to construct the semi-conductor plant in the western Indian state of Gujarat. This would have set India as one of the major electronics manufacturer in the world. India estimated its semiconductor market to be worth 63 billion dollars by 2026.
The incident is a serious set back to prime minister Narendra Modi’s plans for India but Vedanta assures they are fully committed to the project and will align with other partners to realize the vision.
Foxconn is a Taiwanese based multinational electronics contract manufacturer that specializes in the manufacturing of computer and consumer electronics. The company is popularly known for manufacturing systems for iPads, iPhones, blackberry and Nintendo gaming consoles just to name a few.