Make in India Plan suffers Jolt, Foxconn breaks USD 19.5 Billion Chip Joint Venture With Vedanta

The plans for manufacturing semiconductors in India have suffered a major setback. Taiwan’s Foxconn has broken the semiconductor joint venture worth more than $ 19 billion with Vedanta, which is involved in business ranging from metals to oil. Foxconn and Vedanta, among the big contract manufacturing companies, had signed an agreement last year to set up semiconductor and display manufacturing plants in Gujarat.

A statement issued by Foxconn said, “Foxconn has decided not to proceed with the joint venture with Vedanta.” The company said that it had worked with Vedanta for more than a year on this joint venture. However, both the companies have decided to end this joint venture with mutual consent. Foxconn said that Vedanta will now have the entire stake in it. A request for comment sent to the country’s IT Ministry and Vedanta in this regard has not received a response. iPhone manufacturing company Apple foxconn Is the largest contract manufacturer.

Prime Minister Narendra Modi has given priority to chip manufacturing to strengthen the country’s position in electronics manufacturing. However, Foxconn’s withdrawal from this venture may make it difficult to bring foreign investors into chip manufacturing in the country. Recently, American memory chip maker Micron Technology had said that it will invest $ 825 million in setting up a chip assembly and testing factory in Gujarat. This will be the company’s first factory in the country.

Micron had told that with the cooperation of the Central Government and Gujarat Government, there will be a total investment of 2.75 billion dollars in this factory. Out of this, 50 percent will be received from the Central Government and 20 percent from the Gujarat Government. The construction of this factory is likely to start this year and its first phase may start by the end of next year. This project will provide approximately 5,000 jobs. Because of the big incentives for this project, it needed to be approved by the Cabinet. The US government is encouraging chip manufacturing companies to invest in India.