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Foxconn-Vedanta News: Electronics contract manufacturing company Foxconn has decided to exit the semiconductor joint venture with Vedanta Company of India. Union Minister of State Rajiv Chandrashekhar has reacted to this.
Union Minister of State for Entrepreneurship, Skill Development, Electronics and Technology Rajeev Chandrasekhar tweeted on Monday (July 10), “Foxconn’s decision to pull out of its JV with Vedanta will have no impact on India’s semiconductor fab targets.”
Foxconn had tied up with Vedanta last year to set up a semiconductor and display production plant in Gujarat. About Rs 1.5 lakh crore was to be invested in this.
This decision of Foxconn to withdraw from its JV wth Vedanta has no impact on India’s
‘It is not the job of the government how private companies choose partners’
Minister Chandrasekhar said in a tweet that how two private companies choose or do not choose partners is not the job of the government, but in simple language it means that now both the companies can independently find suitable technology partners in Semicon and Electronics in India. together to advance their strategies.
He said India’s strategy to ramp up the semiconductor ecosystem has seen rapid progress in the 18 months since the Prime Minister Narendra Modi has approved India’s SEMCON strategy and policy.
‘It was well known that…’
Both the companies are committed to ‘Make in India’- Ashwini Vaishnav
Minister of Railways, Communications, Electronics and Information Technology Ashwini Vaishnav has also given a reaction. He tweeted, “Both Foxconn and Vedanta companies are committed to India’s semiconductor mission and Make in India programme.”
What did Foxconn say?
Hon Hai Technology Group (Foxconn) said it is trying to remove the Foxconn name from the semiconductor venture. The company said, ‘‘Foxconn has no relation with this entity. Retaining the original name would create confusion for future shareholders.’’
Foxconn said in the statement that Foxconn has decided not to proceed with the joint venture with Vedanta in order to explore the possibilities of greater diversification opportunities under mutual agreement. According to the statement, Hon Hai Technology Group (Foxconn) and Vedanta worked hard over the past year to make the semiconductor idea a reality. Describing it as a good experience, the company said that it will help both the companies in the future.
The statement said, ‘‘Foxconn is optimistic about the direction of semiconductor development in India. We are the government’s ‘Make in India’ Will continue to strongly support the initiative.’’
What did Vedanta say?
Vedanta said on Monday (July 10) that it is in touch with potential partners for setting up a semiconductor manufacturing plant. The company said it has stepped up efforts to fulfill Prime Minister Modi’s vision for semiconductors. At the same time, it said that India remains important in restoring the global semiconductor supply chain.
Vedanta said in a statement, ‘‘The company is fully committed to its semiconductor manufacturing project. We are in touch with other partners to set up the country’s first semiconductor plant. We will continue to grow our semiconductor team and we have a production-level technology license for 40 nm (nanometres) from a leading integrated device manufacture. Will also acquire license for top-level 28 nm chips.’’
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