Taiwan’s Foxconn (2317.TW) announced on Tuesday its intention to seek incentives provided by India’s semiconductor manufacturing policy. This comes after the company terminated its $19.5 billion chipmaking joint venture with Vedanta, an Indian metals-to-oil conglomerate.
“Foxconn is committed to India and believes in the successful establishment of a strong semiconductor manufacturing ecosystem in the country,” stated the company.
Regarding their future plans, Foxconn mentioned, “Foxconn is actively working towards submitting an application.”
The withdrawal from the semiconductor joint venture with Vedanta represents a setback to Prime Minister Narendra Modi’s chipmaking goals for India.
Foxconn clarified that “both sides acknowledged that the project was not progressing at the desired pace” and there were “challenging gaps that could not be smoothly overcome,” though no specific details were provided.
The company emphasized that this development should not be perceived as negative.
Following the news, Foxconn’s shares on the Taipei stock exchange closed up 0.5% on Tuesday, performing below the broader market index (.TWII) which ended with a 1.5% gain. Vedanta Ltd’s shares in Mumbai fell by up to 2.6%, but later recovered some losses.