Foxconn Withdraws From JV With Vedanta For Chip Manufacture

New Delhi: In a major setback to Prime Minister Narendra Modi's plans of making India a chip-manufacturing hub, Taiwanese chip-making giant Foxconn on Monday announced that it has withdrawn from a joint venture with India-based industrial giant Vedanta.

Foxconn was supposed to execute a $19.5 billion semiconductor joint venture with metals to oil conglomerate Vedanta. Foxconn and Vendanta had signed a MoU in 2022 to establish semiconductor and display production parts in Gujarat, the home state of PM Modi.

"Foxconn has determined it will not move forward on the joint venture with Vedanta," the company said in a statement, without elaborating over the matter. It maintained that the withdrawal matter is settled between the two companies. Vedanta is yet to react to the development.