Foxconn deal fell through ....
Foxconn pulls out from Vedanta's joint venture to make chips
JV had dramatically shifted location from Maharashtra to Gujarat last year
Photo for representation. Reuters
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Tribune News Service
Sandeep Dikshit
New Delhi, July 10
Foxconn has pulled out of the semiconductor joint venture with Vedanta in a divorce that was in the works after the government turned down its request for subsidy as well as asked it to get a technology partner and a manufacturing-grade technology licence to make 28nm chips.
“Foxconn has no connection to the entity and efforts to keep its original name will cause confusion for future stakeholders,” said the company, which is also known as Hon Hai Technology group.
Foxconn said it is “working to remove the Foxconn name from what now is a fully-owned entity of Vedanta”.
Foxconn, a Taiwan-based contract electronics maker, and Vedanta had decided last year to jointly build semiconductor and display production plants in Gujarat for an investment of about Rs 1.5 lakh crore.
“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,’’ said the company statement.
It said for over a year Hon Hai Technology Group (Foxconn) and Vedanta worked hard to bring the semiconductor idea to reality.
“Foxconn is confident about the direction of India’s semiconductor development. We will continue to strongly support the government’s ‘Make In India’ ambitions and establish a diversity of local partnerships that meet the needs of stakeholders,’’ it said.
This project was touted to create over one lakh job opportunities which meant that “India’s own Silicon Valley is a step closer now,’’ Agarwal had said at the time of the joint venture announcement.
Just before the Gujarat assembly elections last year, the joint venture announced that it had decided to set up the plant in the poll-bound state instead of Maharashtra where it had zeroed in on the manufacturing site at Talegaon.
The pull out comes at a time when a US-based chip maker has announced plans to set up a chip assembly unit in India.