Foxconn pulls out of JV with Vedanta for semiconductor plant in Gujarat

Foxconn on Monday (July 10) said it has decided to pull out of a semiconductor joint venture with the Vedanta Group. It is “working to remove the Foxconn name from what now is a fully-owned entity of Vedanta”, said the company in a statement.

“Foxconn has no connection to the entity and efforts to keep its original name will cause confusion for future stakeholders,” Hon Hai Technology group (Foxconn) said.

Foxconn, the global contract electronics maker, and Vedanta had inked an agreement last year to build semiconductor and display production plants in Gujarat, entailing an investment of abour Rs 1.5 lakh crore.

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In its statement on Monday, Foxconn said: “In order to explore more diverse development opportunities, according to mutual agreement, Foxconn has determined it will not move forward on the joint venture with Vedanta.”

It added that for over a year Hon Hai Technology Group (Foxconn) and Vedanta have worked hard to bring a great semiconductor idea to reality. It has been a fruitful experience that can position both companies strongly going forward.

“Foxconn is confident about the direction of Indias semiconductor development. We will continue to strongly support the governments Make In India ambitions and establish a diversity of local partnerships that meet the needs of stakeholders,” it said.

With agency inputs