Vedanta was to hold the majority stake in the JV, according to the MOU signed between the two companies.
Vedanta hits 52-week low: Shares of Vedanta fell nearly 3 per cent 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 now is a fully-owned entity of Vedanta. Foxconn has no connection to the entity and efforts to keep its original name will cause confusion for future stakeholders,” Hon Hai Technology Group (Foxconn) said.
The stock opened at Rs 275 against the previous close of Rs 282.25 and fell 2.6 per cent to Rs 274.90 soon.
Vedanta was to hold 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 move forward on the joint venture with Vedanta.
“Foxconn is working to remove the Foxconn name from what now is a fully-owned entity of Vedanta,” Foxconn said.
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After the withdrawal of Foxconn, Vedanta said that it is fully committed to its semiconductor project and has lined up other partners to set up India’s first foundry. “Vedanta reiterates that it is fully committed to its semiconductor fab project 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 the license for production-grade technology for 40 nm from a prominent Integrated Device Manufacturer (IDM),” Vedanta said in a statement.
Minister of State for Electronics and IT Rajeev Chandrasekhar said that Taiwanese electronics manufacturer Foxconn’s decision to pull out of the Vedanta joint venture has no impact on India’s semiconductor fabrication plant goal. “This decision of Foxconn to withdraw from its JV with Vedanta has no impact on India’s Semiconductor Fab goals.” Chandrasekhar tweeted. “It’s 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,” Chandrasekhar tweeted.
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Meanwhile, Minister for Railways, Communications, Electronics & Information Technology, Ashwini Vaishnaw wrote on Twitter that “Both the companies Foxconn and Vedanta are committed to India’s semiconductor mission and Make in India program.”
