Foxconn pulls out of semiconductor business with Vedanta in India
🟦 Withdrew from Foxconn semiconductor manufacturing joint venture
Taiwanese electronics giant Foxconn has announced that it is withdrawing from its semiconductor manufacturing joint venture with Indian resource giant Vedanta. Foxconn stated the reason “to explore more diverse development opportunities.” Meanwhile, Vedanta has announced that it will switch the joint venture to 100% ownership following the withdrawal of Foxconn.
🟦 Request for re-application from the Government of India
Foxconn, Sharp’s parent company, was entering the semiconductor business as a new field. However, there were reports of financial and technical problems with the semiconductor manufacturing plan with Vedanta.
The two companies established a joint venture for semiconductor manufacturing in India in February 2022. Later, Vedanta announced the construction of a semiconductor plant in Gujarat, with a total investment of INR 2.1 trillion (about JPY 5400.2 trillion). However, the Indian government had requested that the company reapply to enter the semiconductor business due to changes in promotion measures.
Due to changes in the Indian government’s promotion policy, Foxconn pulls out of semiconductor business with Vedanta in India
I guess I couldn’t come to terms with the Indian government on subsidies.