'Project was not moving fast enough,' says Foxconn after pulling out of $1.9-bn chip JV with Vedanta
"There was recognition from both sides that the project was not moving fast enough, there were challenging gaps we were not able to smoothly overcome, as well as external issues unrelated to the project," the chip major said, nearly a year after signing the pact with Vedanta in September 2022.
- Jul 11, 2023,
- Updated Jul 11, 2023 5:09 PM IST
Days after withdrawing from a $1.9-billion semiconductor joint venture with Vedanta, Foxconn on Tuesday said it parted ways as "the project was not moving fast enough". The Taiwanese firm said both parties mutually agreed to part ways and this was not a negative, rejecting reports that it was a setback for India's semiconductor move.
"There was recognition from both sides that the project was not moving fast enough, there were challenging gaps we were not able to smoothly overcome, as well as external issues unrelated to the project," the chip major said, nearly a year after signing the pact with Vedanta in September 2022.
The firm also said that some reports were portraying its withdrawal from the joint venture as a negative example of the company's investment integrity. "That is absolutely not the case," the company said. "When Foxconn course corrects, it is done only after heavy considerations on the near-term impact to our stakeholders, and on the long-term corporate health to the Group and our shareholders."
Foxconn said that building fabs from scratch in a new geography is a challenge, but it is committed to investing in India. "We have been working on challenges like this since the 1980s. Foxconn has no intention to do anything but continue to strongly support the government's 'Make In India' ambitions and establish a diversity of local partnerships that meet the needs of stakeholders," the chip maker said.
The Taiwanese electronics manufacturing giant said it is working toward submitting an application related to the 'modified programme for semiconductors and display fab ecosystem'. "We have been actively reviewing the landscape for optimal partners. We welcome a diverse set of stakeholders, both inside India and abroad, who also want to see India get to the next level and can complement Foxconn’s world-class supply chain management and manufacturing efficiency," the firm said.
The firm's statement comes just hours after it was reported that it was planning to apply for incentives that the Indian government is offering under its semiconductor manufacturing policy. The Taiwanese firm has now said that it is reviewing the landscape for optimal partners for the project in India.
Days after withdrawing from a $1.9-billion semiconductor joint venture with Vedanta, Foxconn on Tuesday said it parted ways as "the project was not moving fast enough". The Taiwanese firm said both parties mutually agreed to part ways and this was not a negative, rejecting reports that it was a setback for India's semiconductor move.
"There was recognition from both sides that the project was not moving fast enough, there were challenging gaps we were not able to smoothly overcome, as well as external issues unrelated to the project," the chip major said, nearly a year after signing the pact with Vedanta in September 2022.
The firm also said that some reports were portraying its withdrawal from the joint venture as a negative example of the company's investment integrity. "That is absolutely not the case," the company said. "When Foxconn course corrects, it is done only after heavy considerations on the near-term impact to our stakeholders, and on the long-term corporate health to the Group and our shareholders."
Foxconn said that building fabs from scratch in a new geography is a challenge, but it is committed to investing in India. "We have been working on challenges like this since the 1980s. Foxconn has no intention to do anything but continue to strongly support the government's 'Make In India' ambitions and establish a diversity of local partnerships that meet the needs of stakeholders," the chip maker said.
The Taiwanese electronics manufacturing giant said it is working toward submitting an application related to the 'modified programme for semiconductors and display fab ecosystem'. "We have been actively reviewing the landscape for optimal partners. We welcome a diverse set of stakeholders, both inside India and abroad, who also want to see India get to the next level and can complement Foxconn’s world-class supply chain management and manufacturing efficiency," the firm said.
The firm's statement comes just hours after it was reported that it was planning to apply for incentives that the Indian government is offering under its semiconductor manufacturing policy. The Taiwanese firm has now said that it is reviewing the landscape for optimal partners for the project in India.