A day after breaking the joint venture (JV) deal with metal-to-oil conglomerate Vedanta group, Foxconn announced on Tuesday, 11 July, that it is committed to India and will pursue its Semiconductor manufacturing plan in the country.
In its official statement, the company stated that building fabs from scratch in a new geography is a challenge, but Foxconn is committed to investing in India. It added that the company sees the country successfully establishing a robust semiconductor manufacturing ecosystem.
According to its latest announcement, the Taiwanese electronic manufacturing giant is now working on a plan to separately apply for establishing a semiconductor manufacturing unit in India. Additionally, the company stated that it is actively looking for optimal partners.
The company said, “Foxconn is working toward submitting an application related to Modified Programme for Semiconductors and Display Fab Ecosystem. We have been actively reviewing the landscape for optimal partners.”
The company added, “We welcome a diverse set of stakeholders, both inside India and abroad, who also want to see India get to the next level and can complement Foxconn’s world-class supply chain management and manufacturing efficiency.”
Foxconn and Vedanta mutually parted ways
Earlier, on Monday, the 10th of July, Foxconn stated that it has terminated its USD 19.5 billion joint venture deal with mining baron Anil Agarwal’s Vedanta Ltd.
Reportedly, the venture faced difficulties in securing a technology partner to manufacture chips that are used in mobile phones, refrigerators, and cars.
On the 11th of July, Foxconn explained its decision to pull out of the JV with Vedanta and claimed that this is not a negative. The company stated that both parties mutually agreed to part ways. The company further highlighted that there was recognition from both sides that the project was not moving fast enough.
In its statement, Foxconn added that there were other challenging gaps that both sides were not able to smoothly overcome. However, due to the competitive and sensitive issues involved in negotiating large-scale investments, the company refused to share any details.
The statement added, “We understand there is a lot of interest in Foxconn’s plans and India’s information ecosystem is porous. However, due to competitive and sensitive issues involved in negotiating large-scale investments, Foxconn is unable to disclose more information at this time.”
The company has categorically said that it has no intention to do anything but continue to strongly support Government’s ‘Make in India’ ambitions and establish a diversity of local partnerships that meet the needs of stakeholders.
Foxconn also added that it has maintained open lines of communication with the government.