No impact on India, says MoS IT Rajeev Chandrasekhar as Foxconn pulls out of semiconductor deal with Vedanta

➡️This decision of Foxconn to withdraw from its JV wth Vedanta has no impact on India’s #Semiconductor Fab goals. None.

➡️Both Foxconn n Vedanta have significant investments in India and are valued investors who are creating jobs n growth.

➡️It was well known that both… https://t.co/0DQrwXeCIr

— Rajeev Chandrasekhar 🇮🇳 (@Rajeev_GoI) July 10, 2023

In September last year, billionaire Anil Agarwal-promoted Vedanta and Foxconn had announced the setting up of India’s first electronic chip manufacturing unit in Gujarat with an investment of around USD 1.5 lakh crore.

Union Minister of Electronics and IT Ashwini Vaishnaw, moreover, took to Twitter to affirm that Foxconn and Vedanta were committed to the country’s semiconductor mission and the Make-in-India programme. “Both the companies Foxconn and Vedanta are committed to India’s semiconductor mission and Make in India program,” Vaishnaw tweeted.

Chandrasekhar further said: “Its not for govt to get into why or how two private companies choose to partner or choose not to, but in simple terms it means both companies can & will now pursue their strategies in India independently, and with appropriate technology partners in Semicon n Electronics.”

“It was well known that both companies had no prior semicon experience or Technology and were expected to source Fab tech from a Tech partner. While their JV VFSL had originally submitted a proposal for 28nm fab, they could not source appropriate Tech partner for that proposal,” the minister tweeted.

He said that Vedanta through JV VFSL (Vedanta-Foxconn Semiconductors Limited) has recently submitted a 40 nm fab proposal backed by a technology licensing agreement from a Global Semicon major, which is currently being evaluated by government’s Semicon India Tech Advisory group.

The minister said that India’s strategy of catalyzing semiconductor ecosystem has seen rapid progress in the 18 months since Prime Minister Narendra Modi approved India’s Semicon strategy and policy.