Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

New Delhi, <keyword id="6354671" type="General" weightage="20" keywordseo="foxconn" source="Orion">Foxconn</keyword> on Monday said it has decided to pull out of semiconductor joint venture with Indian conglomerate <keyword id="28423" type="General" weightage="20" keywordseo="vedanta" source="Orion">Vedanta</keyword>, according to a statement. Foxconn said it is "working to remove the Foxconn name from what now is a fully-owned entity of Vedanta". "Foxconn has no connection to the entity and efforts to keep its original name will cause confusion for future stakeholders," <keyword id="12919988" type="General" weightage="50" keywordseo="hon-hai-technology-group" source="Orion">Hon Hai Technology group</keyword> (Foxconn) said. Foxconn, the global contract electronics maker, and Vedanta had inked an agreement last year to build semiconductor and display production plants in Gujarat entailing an investment of abour Rs 1.5 lakh crore. In a statement on Monday Foxconn said: "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." The statement said that for over a year Hon Hai Technology Group (Foxconn) and Vedanta have worked hard to bring a great semiconductor idea to reality. It has been a fruitful experience that can position both companies strongly going forward. "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.

Foxconn withdraws from India's semiconductor JV with Vedanta

<ul><li>Neither of the companies had prior semiconductor experience or technology, says MoS IT Rajeev <keyword id="79017" type="General" weightage="80" keywordseo="chandrasekhar" source="Orion">Chandrasekhar</keyword>. </li><li>As per IANS, incentive approval delays by the government might have contributed to Foxconn's decision to pull out of the venture. </li><li><keyword id="28423" type="General" weightage="100" keywordseo="vedanta" source="Orion">Vedanta</keyword> says that it has lined up other partners to set up India’s first foundry. </li></ul>Barely a year into signing an ambitious $19.5 billion deal to manufacture semiconductors in India, the <keyword id="17964685" type="General" weightage="20" keywordseo="foxconn-vedanta-deal" source="Orion">Foxconn-Vedanta deal</keyword> went sour and it was curtains on Monday. While Foxconn did not give a reason for the same, the Union Minister of State for Electronics and IT Rajeev Chandrasekhar had a view on why the deal to set up a facility in Gujarat went wrong. “It was well known that both companies had no prior semiconductor experience or technology and were expected to source Fab tech from a tech partner. They could not source an appropriate tech partner for that proposal,” Chandrasekhar said in a tweet, adding that both Foxconn and Vedanta have significant investments in India. He had said earlier in May that the JV which had intended to set-up a facility in Gujarat, has been progressing slowly. Incentives &amp; delays Vedanta, which is one of India’s top energy players, had entered into an agreement with the Taiwanese major which is known as the iPhone component maker — to make 20-28 nm size chips. It is noteworthy here that India plans to become a <keyword id="712417" type="General" weightage="20" keywordseo="semiconductor-manufacturing" source="Orion">semiconductor manufacturing</keyword> destination and get a slice of Taiwan’s pie which manufactures over 90% of chips currently. Semiconductor chips are essential components in electronic devices, and their manufacturing is key to gaining an edge over China. The JV had gone through many delays, and has now gone completely kaput. As per a source-based IANS report, concerns about incentive approval delays by the Union government had contributed to Foxconn's decision to pull out of the venture. The government had raised posers on the costing provided to request incentives from the government. The government has also decided to keep open the $10 billion financial incentive scheme with a 50% subsidy on investments for making semiconductors in India for potential applicants. ‘India is just getting started’ Now, Vedanta intends to go ahead with the project and is working on removing Foxconn’s name and finding a new partner. "We have lined up other partners to set up India’s first foundry. We will continue to grow our semiconductor team, and we have the licence for production-grade technology for 40 nm from a prominent Integrated Device Manufacturer (IDM). We will shortly acquire a licence for production-grade 28 nm as well,” said Vedanta. Chandrasekhar also said that Vedanta recently submitted a 40 nm fab proposal backed by tech licensing agreement from a global semiconductor major. It is currently under evaluation by Semicon India Tech Advisory group. “It is not for the government to get into why or how two private companies choose to partner or choose not to but, in simple terms, it means both companies can and will now pursue their strategies in India independently, and with appropriate technology partners in semicon and electronics,” said the minister. India is just getting started on semiconductor manufacturing locally, Chandrasekhar added. As per a joint report by <a href="https://www.counterpointresearch.com/india-semiconductor-manufacturing-trajectory/#:~:text=India's%20semiconductor%20market%20is%20expected,up%20a%20semiconductor%20manufacturing%20facility.">Counterpoint Research and the India Electronics</a> &amp; Semiconductor Association (IESA), India’s semiconductor market was valued at $22.7 billion in 2019. The report had also expected it to grow significantly to $64 billion by 2026 – driven by demand from consumer electronics, telecom, IT hardware and other sectors. The Deal Timeline December 2021: The Union Cabinet approves ₹76,000 crore scheme to boost semiconductor and display manufacturing in the country. February 2022: Foxconn and Vedanta forge a JV to manufacture semiconductors September 2022: The partners sign pacts to set up plans to build separate units for semiconductor and display production in Ahmedabad. September 2022: The Union Cabinet tweaks the semiconductor scheme, approves 50% financial incentives for manufacturers of semiconductor fabs across technology nodes and compound semiconductors, packaging, and other chip facilities May 2023: MoS IT Rajeev Chandrasekhar says that <keyword id="17964684" type="General" weightage="20" keywordseo="foxconn-vedanta-jv" source="Orion">Foxconn-Vedanta JV</keyword> is struggling to find a tech partner. (With IANS inputs)

Foxconn-Vedanta: How the $19.5 billion deal went kaput

New Delhi, Days after Vedanta group's Taiwanese partner pulled out of a USD 19.5 billion semiconductor-making project, company chairman <keyword id="6354819" type="General" weightage="20" keywordseo="anil-agarwal" source="Orion">Anil Agarwal</keyword> on Wednesday said partners have been lined up for the venture and Vedanta will begin foray into chip making this year. Agarwal however did not identify the partner. <keyword id="12919988" type="General" weightage="50" keywordseo="hon-hai-technology-group" source="Orion">Hon Hai Technology Group</keyword>, also known as <keyword id="6354671" type="General" weightage="50" keywordseo="foxconn" source="Orion">Foxconn</keyword>, earlier this week pulled out of the chipmaking joint venture with Vedanta and said it intends to apply for incentives under the government's semiconductor production plan. Just last week, Vedanta had said it will acquire semiconductor and display glass units from a group company. Most of the world's chips are manufactured in a handful of countries and India, which expects its semiconductor market to be worth USD 63 billion by 2026, is a late entrant. Semiconductors find wide applications and are used in devices such as mobile phones to refrigerators and in cars. Speaking at Vedanta's annual shareholder meeting, Agarwal said there was a huge opportunity in the electronics sector as India imports USD 100 billion worth of electronics every year. This includes USD 30 billion worth of semiconductor and display glass. "We have lined up partners for our semiconductor venture," he said without mentioning of the Foxconn pullout. "This year, subject to government approvals, your company will begin a historic foray into semiconductor fab and display fab." Soon after Foxconn announced pulling out of the venture on Monday, Vedanta had said it was fully committed to its semiconductor project and has lined up other partners to set up India's first foundry. "We have the licence for production-grade technology for 40 nm from a prominent integrated device manufacturer," it had said in a statement, without identifying the firm supplying the technology. "We will shortly acquire a licence for production-grade 28 nm as well." On Wednesday, Agarwal said a foray into semiconductor manufacturing will open an entirely new avenue of rapid growth for the company in a sector that is strategic for the country. Its subsidiary AvanStrate, the 4th largest manufacturer of glass substrate in the world, has the niche patented technology and is one among the only four global companies to own this, he said. The semiconductor and display glass ventures will "enable our youth to have access to affordable electronic devices which will help them fulfill their aspirations," he said. Foxconn is reported to be in talks with several local and international partners to make semiconductors in India using mature chip manufacturing technology for products including EVs.

Anil Agarwal says partners lined up for semiconductor plans

<ul class="summary-list"><li>Foxconn said Monday it's scrapping a $20 billion JV with Indian conglomerate Vedanta to make semiconductors. </li><li>Other plans to boost India's chipmaking sectors are also progressing slowly.</li></ul>India has big plans to boost its chipmaking industry, but the country is already meeting setbacks.On Monday, Taiwan's Foxconn — best known for being a major parts supplier to Apple — said it's withdrawing from a <a href="https://www.reuters.com/world/india/vedanta-foxconn-sign-mou-with-modis-home-state-20-bln-chip-foray-2022-09-13/" target="_blank" rel="noopener">$19.5 billion joint venture</a> with Indian conglomerate Vedanta without citing a reason for the breakup. The two companies <a href="https://www.foxconn.com/en-us/press-center/events/foxconn-events/740" target="_blank" rel="noopener">signed an agreement in February 2022</a> to form a joint venture, or JV, to manufacture semiconductors in India. "Foxconn has determined it will not move forward on the joint venture with Vedanta," the company, known as Hon Hai Technology Group in Taiwan and China, said in a <a href="https://emops.twse.com.tw/server-java/t05sr01_1_e?&amp;isNew=Y&amp;seq_no=2&amp;spoke_time=222046&amp;spoke_date=20230710&amp;co_id=2317" target="_blank" rel="noopener">Monday statement to the Taiwan Stock Exchange.</a> The JV is now wholly owned by Vedanta, it added.Foxconn said the two companies had worked for over a year to bring "a great semiconductor idea to reality," but have mutually agreed to end the JV, which is now wholly owned by Vedanta. <a href="https://www.reuters.com/technology/foxconn-pulls-out-india-chip-jv-with-vedanta-2023-07-10/" target="_blank" rel="noopener">A source familiar with the matter told Reuters</a> that concerns over delays for approvals of incentives contributed to Foxconn's decision to abandon the venture in Gujarat, the home state of Prime Minister Narendra Modi."There was recognition from both sides that the project was not moving fast enough, there were challenging gaps we were not able to smoothly overcome, as well as external issues unrelated to the project," Foxconn said in a separate Tuesday statement. It added the mutual breakup "is not a negative."Foxconn also said it plans to apply for Indian government incentives for chipmaking projects.Still, the breakup is seen as a setback to Modi's ambition for India to become a key player in the global chip supply chain amid the geopolitical tensions in the Taiwan Straits.India already has an existing chipmaking industry, but Taiwan — which China claims as its territory — produces a vast majority of the world's chips. <a href="https://www.businessinsider.com/tsmc-us-china-tensions-may-dictate-fate-of-global-economy-2022-10" target="_blank" rel="noopener">Taiwan Semiconductor Manufacturing Company alone makes over half of the world's supply,</a> Insider reported previously. However, India's chip manufacturing expansion plans have been moving slowly.Apart from Foxconn abandoning its JV with Vedanta, two other chipmaking ventures are also in limbo.A $3 billion venture under global consortium ISMC — which counts Israel's Tower Semiconductor as a partner — has stalled, as Tower is in the process of being <a href="https://www.intc.com/news-events/press-releases/detail/1527/intel-to-acquire-tower-semiconductor-for-5-4-billion" target="_blank" rel="noopener">acquired by tech bigwig Intel,</a> <a href="https://www.reuters.com/world/india/india-chip-plan-stalls-after-tower-intel-deal-setback-modi-2023-05-31/" target="_blank" rel="noopener">Reuters reported on June 1.</a>Another $3 billion project by Singapore-based IGSS venture has also been halted because the company wanted to re-submit its application for government incentives, per <a href="https://www.reuters.com/technology/foxconn-pulls-out-india-chip-jv-with-vedanta-2023-07-10/" target="_blank" rel="noopener">Reuters.</a>However, it hasn't been all bad news for India's tech ambitions. <a href="https://investors.micron.com/news-releases/news-release-details/micron-announces-new-semiconductor-assembly-and-test-facility" target="_blank" rel="noopener">US chipmaker Micron said last month</a> it plans to invest up to $825 million in a chip testing and packaging unit in India.Rajeev Chandrasekhar, India's minister of state for electronics and IT, <a href="https://twitter.com/Rajeev_GoI/status/1678389567504916480" target="_blank" rel="noopener">tweeted Monday</a> that Foxconn's decision to <a href="https://indianexpress.com/article/business/foxconn-pulls-out-india-chip-jv-vedanta-8823949/" target="_blank" rel="noopener">pull out of its JV Vedanta</a> would have "no impact" on the country's chipmaking goals."To those editorializing abt this decision of Foxconn/Vedanta being a 'blow' to Indias Semicon ambition , I can only say its a bad idea to bet against India under PM Modi," Chandrasekhar tweeted. Vedanta did not immediately respond to a request for comment from Insider.

You Searched For "foxconn vedanta jv" and got 4 results

Foxconn withdraws from India's semiconductor JV with Vedanta

PTI

Foxconn-Vedanta: How the $19.5 billion deal went kaput

BI India Bureau

Anil Agarwal says partners lined up for semiconductor plans

PTI

From a failed $20 billion joint venture to stalled projects, India's dreams of becoming a chipmaking powerhouse are off to a bad start

Huileng Tan

Popular Keywords

Buying Guides