Virendra Pandit
New Delhi: Taiwan’s chipmaker Foxconn on Monday announced it is pulling out of a joint venture (JV) with Indian conglomerate Vedanta Ltd that was set up to produce semiconductors from Gujarat, the media reported.
In 2022, Foxconn and Vedanta signed a pact to invest USD 19.5 billion to set up semiconductor and display production plants in Gujarat, so as to tap into India’s ambitious plans to become an electronics major and exporter.
“Foxconn is working to remove the Foxconn name from what now is a fully-owned entity of Vedanta,” the electronics manufacturer said in a statement.
But the project is proceeding, although slowly, as talks to rope in European chipmaker STMicroelectronics as a partner got deadlocked.
Besides, metal-to-oil Vedanta’s 2022 disclosures, related to the deal, gave the impression that it alone was running the project. Later, it clarified that Volcan Investments would take the helm. Still, India’s market regulator SEBI, after an investigation, penalized Vedanta last week, saying it had broken regulations by initially making it appear it had partnered with Foxconn.
Last week, Vedanta said it would take over from its holding company the ownership of a JV with Taiwan’s Foxconn that was set up to make semiconductors. It would also take over a display glass manufacturing venture from Volcan Investments, Vedanta’s holding company.
Twin Star Technologies is a wholly-owned subsidiary of Volcan Investments Limited, the ultimate holding company of Vedanta Ltd.
The new structure will make Vedanta India’s first company in Integrated Semiconductor and Display Fab Business.