Foxconn pulls out of $19 billion chipmaking project in India
In a significant setback for the Indian government’s ambition to establish itself as a tech manufacturing powerhouse, Foxconn, the world’s largest contract electronics manufacturer, has announced the termination of its $19.4 billion joint venture with Vedanta, an Indian metals and energy conglomerate. The decision deals a blow to the government’s plans, even as officials have attempted to counter such concerns.
Foxconn, renowned as a major supplier to Apple, stated that the decision was reached through mutual agreement and would enable the company to explore alternative development opportunities. As a result, the joint venture will now become Vedanta’s sole ownership.
However, Foxconn sought to reassure by issuing a subsequent statement expressing its continued commitment to invest in chipmaking in India. The company stated its intention to apply for a government program that offers subsidies for the establishment of semiconductor or electronic display production facilities within the country.
While the termination of the joint venture represents a setback, Foxconn’s commitment to exploring other avenues for development, as well as its continued interest in Indian chipmaking, suggests that the company remains engaged with India’s potential as a tech manufacturing hub. The Indian government will need to assess the impact of this development and consider alternative strategies to attract further investment and propel the country’s tech manufacturing ambitions forward.
