Taiwan’s Foxconn said on Monday it has withdrawn from a $19.5 billion semiconductor joint venture with Indian metals-to-oil conglomerate Vedanta, in a setback to Prime Minister Narendra Modi’s chipmaking plans for India. Foxconn, the world’s largest contract electronics maker, and Vedanta signed a pact last year to set up semiconductor and display production plants in Modi’s home state of Gujarat.
However, the Indian government remains steadfast in its belief that this setback will not deter the country’s progress in the semiconductor industry. Minister of State for Electronics and IT Rajeev Chandrasekhar Monday said that Taiwanese electronics manufacturer Foxconn’s decision to pull out of a joint venture with Vedanta would have no impact on India’s semiconductor fabrication plant goal.
This decision of Foxconn to withdraw from its JV with Vedanta has no impact on India’s Semiconductor Fab goals. None
Chandrasekhar tweeted, adding that both companies have significant investments in India and are valued investors who are creating jobs and growth.
In September last year, billionaire Anil Agarwal-promoted Vedanta and Foxconn had announced the setting up of India’s first electronic chip manufacturing unit in Gujarat with an investment of around USD 1.5 lakh crore. Union Minister of Electronics and IT Ashwini Vaishnaw, moreover, took to Twitter to affirm that Foxconn and Vedanta were committed to the country’s semiconductor mission and the Make-in-India programme. “Both the companies Foxconn and Vedanta are committed to India’s semiconductor mission and Make in India program,” Vaishnaw tweeted.
India has been actively striving to become a major player in the semiconductor industry. The government recognizes the importance of semiconductor technology in various sectors, including telecommunications, electronics, and defense. By fostering domestic chip manufacturing, India aims to reduce reliance on imports, boost economic growth, and create job opportunities.
The Indian government has implemented various initiatives to encourage the semiconductor industry’s growth. This includes schemes such as the Production-Linked Incentive (PLI) scheme, which offers financial incentives to companies engaged in semiconductor manufacturing.
Foxconn’s decision to withdraw from its chip plant venture may have raised concerns, but the Indian government remains confident in its semiconductor goals. With favorable demographics, government initiatives, a skilled workforce, and a resilient approach, India is determined to propel its semiconductor industry forward.