'No impact on India's semiconductor fab goals': MoS IT on Foxconn pulling out of chip JV with Vedanta

Government on Monday said Taiwan's Foxconn and India's Vedanta's much-anticipated $19.5 billion semiconductor joint venture falling through will have no impact on India's plans. MoS IT Rajeev Chandrashekhar said on Twitter that Foxconn's decision to withdraw from its JV with Vedanta will have no impact on India's semiconductor fab goals.

MoS explained, "Both Foxconn n Vedanta have significant investments in India and are value investors who are creating jobs n growth.It was well known that both companies had no prior semicon experience or Technology and were expected to source Fab tech from a Tech partner. While their JV VFSL had originally submitted a proposal for 28nm fab, they could not source appropriate Tech partner for that proposal."

➡️This decision of Foxconn to withdraw from its JV wth Vedanta has no impact on India's #Semiconductor Fab goals. None.

➡️Both Foxconn n Vedanta have significant investments in India and are valued investors who are creating jobs n growth.

➡️It was well known that both… https://t.co/0DQrwXeCIr

— Rajeev Chandrasekhar 🇮🇳 (@Rajeev_GoI) July 10, 2023

"Vedanta reiterates that it is fully committed to its semiconductor fab project and 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 license for production-grade technology for 40 nm from a prominent Integrated Device Manufacturer (IDM)," Vedanta spokesperson told Business Today.

The company also said that it will shortly acquire a license for production-grade 28 nm as well. Vedanta has redoubled its efforts to fulfill the Prime Minister's vision for semiconductors and India remains pivotal in repositioning global semiconductor supply chains, it said.A pact between Foxconn, the world's largest contract electronics maker, and Vedanta was signed last year to set up semiconductor and display production plants in Prime Minister Narendra Modi's home state of Gujarat at a cost of Rs 1.54 lakh crore.