Here’s what Union Minister Vaishnaw says after Foxconn scraps semiconductor deal from Vedanta

After the decision of Taiwan’s Foxconn to withdraw a $19.5 billion chip-making venture, Union Minister of Electronics and IT Ashwini Vaishnaw said that the manufacturing giant Foxconn and mining behemoth Vedanta are committed to the ‘Make in India’ mission. The statement from the minister came following the announcement of pulling out of its semiconductor joint […]

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Sonia Dham
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After the decision of Taiwan’s Foxconn to withdraw a $19.5 billion chip-making venture, Union Minister of Electronics and IT Ashwini Vaishnaw said that the manufacturing giant Foxconn and mining behemoth Vedanta are committed to the ‘Make in India’ mission.

The statement from the minister came following the announcement of pulling out of its semiconductor joint venture Vedanta Foxconn Semiconductors Private Limited.

“Both the companies Foxconn and Vedanta are committed to India’s semiconductor mission and Make in India program,” Vaishnaw tweeted.

Furthermore, government sources have said that Vedanta and Foxconn are still actively considering their respective semiconductor plans for India. Both companies are intending to pursue their plans independently, and they are also expected to collaborate with separate technology partners, they added.

Here’s what Minister Rajeev Chandrasekhar said

Adding to that, Rajeev Chandrasekhar, Union Minister of State for Entrepreneurship, in a tweet elaborated, “This decision of Foxconn to withdraw from its JV with Vedanta has no impact on India’s Semiconductor Fab goals. None.”

Chandrasekhar concluded by expressing confidence in PM Modi, saying, “India’s strategy of catalyzing Semiconductor Ecosystem has seen rapid progress in the 18 months since PM @narendramodi ji approved Indias Semicon strategy n policy.”

He further added that “While their JV VFSL had originally submitted a proposal for 28nm fab, they could not source appropriate Tech partner for that proposal. Vendanta thru VFSL has recently submitted a 40nm fab proposal backed by a Tech licensing agreement from a Global Semicon major – which is currently being evaluated by @Semicon_India Tech Advisory group.”

Both companies were struggling

Notably, Vedanta and Foxconn had signed agreements in September 2022 to invest $19.5 billion to set up semiconductor and display production plants in Gujarat. It is also said that the joint venture was struggling for the tie-up with the technology partner, as Vendanta and Foxconn both did not have experience in the segment.

Foxconn is commonly known for assembling iPhones and Apple products but planned to expand to chips to expand the business.