Apple Supplier Foxconn to Apply for Chipmaking Incentives in India After Pulling Out of $19.5 Billion Vedanta JV

On Monday, Foxconn withdrew from its semiconductor JV with Indian metals-to-oil conglomerate Vedanta.

By Agencies | Updated: 11 July 2023 12:48 IST

Apple Supplier Foxconn to Apply for Chipmaking Incentives in India After Pulling Out of $19.5 Billion Vedanta JV

Photo Credit: Reuters

Foxconn is best known for assembling iPhones and other Apple products

Highlights

The JV pullout is a setback to PM Modi's chipmaking plans for India
Foxconn said, 'This is not a negative'
Vedanta shares fell as much as 2.6 percent in Mumbai after the withdrawal

Taiwan's Foxconn said on Tuesday it plans to apply for incentives that India is offering under its semiconductor manufacturing policy, a day after the company parted ways with Vedanta on a $19.5 billion (roughly Rs. 1,60,600 crore) chipmaking joint venture.

"Foxconn is committed to India and sees the country successfully establishing a robust semiconductor manufacturing ecosystem," the company said.

"Foxconn is working toward submitting an application."

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On Monday, Foxconn withdrew from its semiconductor JV with Indian metals-to-oil conglomerate Vedanta, in a setback to Prime Minister Narendra Modi's chipmaking plans for India.

Foxconn said on Tuesday "there was recognition from both sides that the project was not moving fast enough" and there were other "challenging gaps we were not able to smoothly overcome", without sharing details.

"This is not a negative," Foxconn said in a statement.

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Foxconn's Taipei listed shares closed up 0.5 percent on Tuesday, underperforming the broader market which ended up 1.5 percent Vedanta shares fell as much as 2.6 percent in Mumbai, before paring some losses.

Previously in a statement, Foxconn, the world's largest contract electronics maker, said it "has determined it will not move forward on the joint venture with Vedanta." Agarwal's metals-to-oil conglomerate responded saying it was "fully committed to its semiconductor fab project and we have lined up other partners to set up India's first foundry." It however did not give details of the new partners.

Foxconn, best known for assembling iPhones and other Apple products, and Vedanta last year signed a pact to set up semiconductor and display production plants in Gujarat.

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European chipmaker STMicroelectronics was being roped in as a technology partner for the venture but talks were deadlocked.

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