Foxconn-Vedanta joint venture Archives - Gizmochina

Apple supplier Foxconn eyes India’s chip subsidies after pulling out from Vedanta deal

Sean — Tue, 11 Jul 2023 12:06:39 +0000

Known Apple supplier Foxconn is apparently eyeing the chipmaking subsidies being offered by the Indian government. The news arrives soon after the company pulled out of its multi-billion dollar deal with Vedanta for a chip manufacturing partnership.

Foxconn seeks chip subsidiaries to expand in India

After the deal with Vedanta was terminated, it appears that the contract manufacturer is planning on using the incentives being offered in India to set up a new semiconductor unit in the region. Foxconn stated earlier today (11th July 2023) that it is working on applying under the Modified Programme for Semiconductors and Display Fab Ecosystem in India. This is the sizeable 10 billion US Dollar incentive that helps lower the capital costs for semiconductor and display manufacturing projects by up to 50 percent.

As per their official statement, “We have been actively reviewing the landscape for optimal partners. Foxconn is committed to India and sees the country successfully establishing a robust semiconductor manufacturing ecosystem.” Notably, the company’s recent split with Vedanta also deals a hit to the Modi government which has been pushing for semiconductor production within the country.

But while the Foxconn-Vedanta deal fell apart, the former is still looking to expand in India by setting up its own semiconductor and display manufacturing unit. Furthermore, the company is also in talks with partners that are both domestic and international to make semiconductors in the region for products that include the growing EV market (Electric Vehicles).

Foxconn pulls out from joint venture with Vedanta in India for a semiconductor factory

Jeet — Tue, 11 Jul 2023 02:59:25 +0000

Foxconn, the company known for manufacturing Apple iPhones, had last year announced a joint venture with Vedanta, an oil and metal corporation, to build a semiconductor plant in India.

Now, just weeks after the announcement, Foxconn has pulled out of the deal that is reportedly worth $19.5 billion. The company says that the deal was ended mutually, and it appears that Vedanta will move ahead with other partners.

In a statement, Foxconn said: “In order to explore more diverse development opportunities, according to a mutual agreement, Foxconn has determined it will not move forward on the joint venture with Vedanta.” It is now working towards removing its name from what is now a wholly-owned entity of Vedanta.

This is a blow to the Indian government, which has been trying to put efforts toward economic growth and government programs that are trying to promote manufacturing in the country.

Although several companies, including Apple, are working towards diversifying manufacturing outside of China because of political and economic uncertainties, India stands to benefit the most but hasn’t been able to make the most of this opportunity yet.

For those who are unaware, Foxconn and Vedanta last year signed a pact to set up semiconductor and display production plants in the state of Gujarat in India. As per the reports, chipmaker STMicroelectronics was being roped in as a technology partner for the venture, but talks were deadlocked.

India’s Vedanta and Foxconn team up to manufacture semiconductors in India

Sudhanshu — Mon, 14 Feb 2022 22:27:07 +0000

India’s efforts to become a major semiconductor manufacturer have just got a big boost with the announcement of the Taiwanese contract manufacturer Foxconn teaming up with Indian steel and oil company Vedanta in an effort to build a manufacturing plant for semiconductors in the country.

On Monday, Foxconn revealed that they have entered into a Joint-venture, with Vedanta holding the majority share of the equity. Foxconn further informed that Anil Agarwal, the founder, and chairman of Vedanta Resources Limited will also be the chairman of the joint venture company. The name of the joint venture company has not been made public yet, along with what kind of semiconductors the newly-formed company plans to manufacture.

Foxconn has mentioned that discussions are underway with various state governments regarding where the fab will be set up by the company. Nevertheless, the new venture is sure to create multiple jobs opportunities in the country.

The new joint venture between Vedanta and Foxconn is a result of the recently announced Performance Linked Incentive (PLI) scheme for electronics manufacturing by the Indian government. The scheme provides many benefits to foreign companies who choose to set up their manufacturing units in the country and also fulfills the government’s “Make in India” agenda.

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