Vedanta, Foxconn dump $19.5 billion chip JV plan; both seek new partners

11 Jul 2023 , 11:53 AM

Vedanta Ltd plans to proceed with its semiconductor business venture despite Taiwan’s Foxconn withdrawing from the joint venture, which planned to invest $19.5 billion in establishing a manufacturing unit in Gujarat, the metals and mining company said on July 10.

In a major setback for billionaire Anil Agarwal’s ambitious plan to establish a semiconductor unit in India — a project that has thus far been dragged by controversy — Hon Hai Technology Group, also known as Foxconn, announced that it will split from its joint venture partner Vedanta but will continue to seek local partnerships in India.

Vedanta emphasized that it is fully committed to its semiconductor fab project, and has lined up other partners to set up India’s first foundry, said the company in a statement.

Vedanta stated that it will continue to widen its semiconductor team. It has a license from a prominent integrated device manufacturer (IDM) for production-grade technology for a 40 nm fab and ‘will shortly’ acquire a license for production-grade 28 nm as well, according to the company.

Vedanta’s announcement on July 8 that it will take over the semiconductor and display glass business ventures held by Twin Star Technologies, a unit of its holding company, appears to be the immediate trigger that led to Foxconn’s decision to terminate the joint venture.

At around 11.52 AM, Vedanta was trading 1.49% lower at Rs 278.05, against the previous close of Rs 282.25 on NSE. The counter touched an intraday low of Rs 275.

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