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Foxconn-Vedanta Deal News: Taiwanese electronics manufacturer Foxconn has ended the semiconductor deal with Vedanta. Foxconn announced on Monday (July 10) its exit from the proposed semiconductor manufacturing joint venture. After this announcement, the Center has said that this decision will not affect India’s semiconductor program. While the Congress has taunted the central government. Know the big things related to this matter.
1. Taiwan’s electronics company Foxconn announced to separate itself from industrialist Anil Agarwal’s joint venture with Vedanta. The venture was to set up a semiconductor manufacturing plant in Gujarat with an investment of $19.5 billion (about Rs 1.5 lakh crore).
2. Challenges for this venture had increased due to non-availability of technology partners to make chips used in mobile phones to refrigerators and cars. Both Foxconn and Vedanta do not have any prior experience or technology in making chips. They were expected to get it from a technology partner.
3. Foxconn said it has decided not to go ahead with the joint venture with Vedanta. Now this venture belongs to Vedanta alone. To this Vedanta said that it is fully committed to the semiconductor manufacturing plant and is in touch with some partners to set up India’s first semiconductor plant. However, Vedanta did not give any details of its new partners.
4. After Foxconn’s announcement, Electronics and Information Technology Minister Ashwini Vaishnav said that Taiwanese electronics manufacturing company Foxconn and mining major Vedanta will contribute to the country’s semiconductor mission and Make-in-India programme. are committed. He told NDTV that Foxconn’s exit from the venture would not affect India’s semiconductor programme.
5. Vedanta and Foxconn signed an agreement in September 2022 to invest $19.5 billion to set up semiconductor and display production plants in Gujarat. In May this year, the JV was reported to be facing challenges as it could not find a technology partner.
6. Talks were on to add European chip maker STMicroelectronics as a technology partner to this joint venture, but no agreement could be reached in this direction. The government is trying to make India a new center of semiconductor manufacturing. For this, the government has also started an incentive scheme.
7. Minister of State for Electronics and Information Technology Rajeev Chandrasekhar tweeted that Foxconn’s decision to pull out of its joint venture with Vedanta will have no impact on the goals of India’s semiconductor programme. < /p>
8. Rajeev Chandrasekhar further said that both Foxconn and Vedanta have significant investments in India and are valuable investors who are creating jobs and growth. It was already known that both companies had no prior semiconductor experience or technology and were expected to acquire fab technology from the tech partner. They submitted a proposal for a 28 nm fab, but could not find a suitable tech partner for that proposal.
9. The Union Minister said that India’s strategy for semiconductor ecosystem has seen rapid progress in 18 months after the approval from PM Modi. For those who are calling this decision of Foxconn and Vedanta a blow to India’s Semicon ambition, all I can say is that it is a bad idea to bet against India on the work being done under the leadership of PM Modi.< /p>
10. Congress General Secretary Jairam Ramesh has targeted the central government regarding this matter. He tweeted that while Foxconn-Vedanta is closed, it seems that Micron is still working on semiconductor chip assembly, packaging and testing. Although Micron is putting up only 30% of the $2.75 billion , in which 50% is coming from the Center and 20% from the Government of Gujarat. By any standard, this appears to be a huge subsidy for an American company.
(also input from PTI)
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