NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Narendra Modi
    Amit Shah
    Box Office Collection
    Bharatiya Janata Party (BJP)
    OTT releases
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout

    India
    Business
    World
    Politics
    Sports
    Technology
    Entertainment
    Auto
    Lifestyle
    Inspirational
    Career
    Bengaluru
    Delhi
    Mumbai

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
    Home / News / Business News / Foxconn exits $19.5bn semiconductor JV with Vedanta: Here's why
    Next Article
    Foxconn exits $19.5bn semiconductor JV with Vedanta: Here's why
    Foxconn will not be a part of the semiconductor JV with Vedanta

    Foxconn exits $19.5bn semiconductor JV with Vedanta: Here's why

    By Athik Saleh
    Jul 10, 2023
    06:41 pm

    What's the story

    The semiconductor joint venture (JV) between Foxconn and Vedanta was expected to be the cornerstone of India's semiconductor aspirations.

    However, that has become a pipe dream now, with Foxconn announcing its decision to pull out of the $19.5 billion JV.

    The writing was on the wall for the partnership for a while. Let's see what led to the split.

    Context

    Why does this story matter?

    Last year, Anil Agarwal's Vedanta and Taiwanese electronics giant Foxconn signed a memorandum of understanding (MoU) to set up a semiconductor manufacturing facility in Prime Minister Narendra Modi's home state of Gujarat.

    It was a seen as big boost to India's 'Make In India' ambitions. The project's value was in Foxconn's expertise.

    With that gone, there are doubts about its success.

    Full ownership

    Vedanta has taken full ownership of the JV

    Foxconn's decision to dump the JV does not come as a surprise to most. Especially since last week when Vedanta took full ownership of the JV, Vedanta Foxconn Semiconductors Private Limited.

    Twin Star Technologies, a Vedanta Group company, was the majority partner in the JV. Since then, it was only a matter of time before Foxconn made the split official.

    Foxconn

    Foxconn did not elaborate on why the JV ended

    "Foxconn has determined it will not move forward on the joint venture with Vedanta," the company said.

    It added, "Foxconn is working to remove the Foxconn name from what now is a fully-owned entity of Vedanta." The firm said it has no connection to the present entity.

    Foxconn didn't elaborate on what caused the split but it said it was a mutual decision.

    STMicro

    Foxconn and Vedanta couldn't get STMicroelectronics on board

    The JV has faced multiple setbacks since the beginning. Vedanta and Foxconn's plan was to involve European chipmaker STMicroelectronics as a partner.

    STMicroelectronics was ready to license technologies. However, the Indian government wanted the European company to be a bigger partner.

    STMicroelectronics was not keen on this proposal. As a result, it stepped away from the JV.

    Financials

    Government reportedly asked Foxconn to look for new partner

    Last month, there were reports about Foxconn looking for a new partner upon the government's direction. The Indian government was reportedly concerned about Vedanta's financial stability.

    It is true that the company has a debt problem and is trying to raise $2 billion to pay the debt.

    Vedanta even approached its rivals to raise funds, inducing suspicion in government circles.

    Differences

    There were differences between companies over application for incentives

    There were also differences between Foxconn and Vedanta about the strategic direction of the project. The companies were asked to resubmit their application for incentives under the India Semiconductor Mission (ISM).

    However, they couldn't reach a consensus on what changes should be made to the application. It seems that the differences between them became too much.

    Blow

    Foxconn's decision is a blow to India's semiconductor aspirations

    Foxconn's decision to exit the JV is a massive blow to India. The country expects its semiconductor market to be worth $63 billion by 2026, and the Foxconn-Vedanta JV was supposed to be the foundation of that.

    Although Foxconn reiterated its support for India's ambitions, it is unclear what it plans to do.

    It might get a new partner like the government suggested.

    Facebook
    Whatsapp
    Twitter
    Linkedin
    Related News
    Latest
    Foxconn
    Vedanta

    Latest

    Napoli win Serie A 2024/25 title: Decoding key stats Antonio Conte
    Winner of 'Roadies 20' leaked! Did your fav make it? MTV
    IPL 2025, SRH overcome RCB: Presenting Player of the Day Pat Cummins
    Phil Salt slams his 9th IPL fifty, surpasses 50 sixes Indian Premier League (IPL)

    Foxconn

    Apple's indifference to President Trump's demands Apple
    Foxconn will invest Rs. 32,000cr in its Indian expansion plans India
    Foxconn to invest $10bn in US factory, Trump takes credit Donald Trump
    Kiss Connectivity: The new wireless data transfer technology Samsung

    Vedanta

    Vedanta: Sulphuric acid leak in Thoothukudi is severe Tamil Nadu
    NGT clears way for reopening of Sterlite plant in Thoothukudi Supreme Court Of India
    SC sets aside NGT order; Sterlite plant to remain closed Supreme Court Of India
    Anil Agarwal, Centricus to invest $10 billion targeting government privatizations Bloomberg
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2025