Vedanta share price slips nearly 3% after Foxconn withdraws from semiconductor JV

Vedanta share price NSE, Vedanta Foxconn semiconductor deal news: Shares of mining major Vedanta reeled under pressure on Tuesday after Taiwanese electronic contract manufacturer Foxconn decided to pull out of a semiconductor joint venture with the conglomerate Vedanta. Vedanta shares fell as much as nearly 3 per cent to Rs 275 apiece on the NSE from the previous close of Rs 282.25. The stock finished at Rs 277.75 apiece, down by Rs 4.5 or 1.59 per cent on the day. 

Foxconn, the global contract electronics maker, and Vedanta inked an agreement last year to build semiconductor and display production plants in Gujarat, entailing an investment of around Rs 1.5 lakh crore.

Foxconn, in a statement, said, "In order to explore more diverse development opportunities, according to mutual agreement, Foxconn has determined it will not move forward on the joint venture with Vedanta." The statement further said that for over a year, Hon Hai Technology Group (Foxconn) and Vedanta have worked hard to bring a great semiconductor idea to reality. It has been a fruitful experience that can position both companies strongly going forward.

"Foxconn is confident about the direction of India's semiconductor development. We will continue to strongly support the government's 'Make In India' ambitions and establish a diversity of local partnerships that meet the needs of stakeholders," it added.

Post the news breakout, Union Minister of Electronics and IT Ashwini Vaishnaw tweeted, "Both the companies, Foxconn and Vedanta, are committed to India's semiconductor mission and Make in India programme."

Vedanta share price history

Vedanta's stock has given a positive return of over 20 per cent in the last 12 months (since July 11, 2022). In comparison, the headline index, Nifty 50, has rallied nearly 20 per cent.

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