Foxconn pulls out of joint venture, Vedanta to take over semiconductor JV from holding company

Foxconn pulls out of semiconductor joint venture with Vedanta: Taiwan's Foxconn said on Monday that it is withdrawing from semiconductor joint venture with Vedanta, meaning the metals-to-oil conglomerate would take over the complete ownership of the JV. 

The electronics manufacturer told Reuters in a statement that "Foxconn is working to remove the Foxconn name from what now is a fully-owned entity of Vedanta." 

Earlier, Vedanta had informed that it would take over the ownership of the joint venture with Taiwan's Foxconn, that had been set up to make semiconductors.

The company had also said that it would take over the display glass manufacturing venture from Vedanta's holding company Volcan Investments. 

In an exchange filing on Friday, Vedanta had announced: "Directors at their meeting held today, July 7, 2023, have considered and approved the acquisition of 100% of Vedanta Foxconn Semiconductors Private Limited (“VFSPL”) and Vedanta Displays Limited (“VDL”), wholly owned subsidiaries of Twin Star Technologies Limited (“TSTL”) via share transfer at face value. TSTL is a wholly owned subsidiary of Volcan Investments Limited, the ultimate holding company of Vedanta Limited."

Speaking on the development, David Reed, CEO of Vedanta’s Semiconductor Business, said, “I believe that India can become the next semiconductor hub for the world. It has all the ingredients for success.”

And post the announcement, Vedanta said it will leverage its expertise in large-scale manufacturing and operational excellence and partner with the best global companies to drive the two businesses.

In order to tap into India's ambition to become an electronics major, Foxconn and Vedanta had signed an agreement in 2022 to invest $19.5 billion to set up factories in Gujarat that would produce semiconductor and displays.

Decision of Foxconn to withdraw from its JV with Vedanta has no impact on India's semiconductor fab goals: MoS IT Rajeev Chandrasekhar

Responding to the news, Union Minister of Electronics and Technology, Rajeev Chandrasekhar tweeted: "This decision of Foxconn to withdraw from its JV with Vedanta has no impact on India's Semiconductor Fab goals." 

"This decision of Foxconn to withdraw from its JV with Vedanta has no impact on India's Semiconductor Fab goals," tweets Union Minister of Electronics and Technology, Rajeev Chandrasekhar. pic.twitter.com/zDASvhv09L

— ANI (@ANI) July 10, 2023