Last updated: July 11, 2023, 11:43 AM IST
A man walks past Vedanta’s logo outside its headquarters in Mumbai, India on Jan. 31, 2018. (Reuters/Danish Siddiqui/File Photo)
Vedanta would own the majority stake in the JV, according to the MOU signed between the two companies.
Vedanta hits low in 52 weeks: Shares of Vedanta fell nearly 3 percent after Foxconn pulled out of their $19.5 billion semiconductor joint venture. Vedanta says it has lined up other potential partners.
Foxconn said it is “working to remove the Foxconn name from what is now a wholly owned entity of Vedanta. Foxconn has no affiliation with the entity and efforts to keep the original name will create confusion among future stakeholders,” said Hon Hai Technology Group (Fox Conn).
The share opened at Rs 275 against the previous close of Rs 282.25 and soon fell 2.6 percent to Rs 274.90.
Vedanta would own the majority stake in the JV, according to the MOU signed between the two companies.
On July 10, 2023, Foxconn said in a statement that in order to explore more diverse development opportunities, it had decided not to continue the joint venture with Vedanta.
“Foxconn is working to remove the Foxconn name from what is now a wholly owned entity of Vedanta,” Foxconn said.
Following Foxconn’s withdrawal, Vedanta said it is fully committed to its semiconductor project and has lined up other partners to set up India’s first foundry. “Vedanta reiterates its full commitment to its semiconductor facility and we have lined up other partners to set up India’s first foundry. We will continue to grow our Semiconductor team, and we have licensed production-grade technology for 40 nm from a prominent Integrated Device Manufacturer (IDM),” Vedanta said in a statement.
State Minister of Electronics and IT Rajeev Chandrasekhar said Taiwan’s electronics manufacturer Foxconn’s decision to pull out of the Vedanta joint venture will not affect the target of the semiconductor plant in India. “This decision by Foxconn to withdraw from the joint venture with Vedanta does not affect the objectives of India’s Semiconductor Fab.” Chandrasekhar tweeted. “It is not for the government to get into why or how two private companies choose whether or not to cooperate, but in simple terms it means that both companies can and will now pursue their strategies in India independently, and with suitable technology partners in Semicon n Electronics,” Chandrasekhar tweeted.
Meanwhile, Ashwini Vaishnaw, Minister of Railways, Communications, Electronics and Information Technology, wrote on Twitter that “Both the Foxconn and Vedanta companies are committed to the Indian semiconductor mission and the Make in India program.”
