Foxconn Dumps $19.5 Billion Chip Plan in Blow To India

Taiwan's Foxconn has withdrawn from a $19.5 billion semiconductor joint venture with Indian metals-to-oil conglomerate Vedanta, it said on Monday in a setback to Prime Minister Narendra Modi's chipmaking plans for India. From a report: Foxconn, the world's largest contract electronics maker, and Vedanta signed a pact last year to set up semiconductor and display production plants in Modi's home state of Gujarat. "Foxconn 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. Modi has made chipmaking a top priority for India's economic strategy in pursuit of a "new era" in electronics manufacturing and Foxconn's move represents a blow to his ambitions of luring foreign investors to make chips locally for the first time.

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