Taiwan’s Foxconn has withdrawn from a $19.5 billion semiconductor joint venture with Indian metals-to-oil conglomerate Vedanta.
The world’s largest contract electronics maker signed a pact with Vedanta last year to set up semiconductor and display production plants in Gujarat.
“Foxconn (2354.TW) has determined it will not move forward on the joint venture with Vedanta,” a Foxconn statement said without elaborating on the reasons.
The company said it had worked with Vedanta for more than a year to bring “a great semiconductor idea to reality”, but they had mutually decided to end the joint venture and it will remove its name from an entity that is now fully owned by Vedanta.
Vedanta said it is fully committed to its semiconductor project and had “lined up other partners to set up India’s first foundry”. “Vedanta has redoubled its efforts” to fulfil Modi’s vision, it added in a statement.