Taiwan’s Foxconn on Monday said it is not interested in doing business with India’s Vedanta any more. Foxconn will not enter into any semiconductor manufacturing joint venture with Vedanta.
Prime Minister Narendra Modi’s chipmaking plan has been dealt a blow by the Taiwanese company’s decision. Because Foxconn was supposed to invest 19.5 billion dollars in this project. Not only India, due to this decision of Foxconn, the stakeholders also fear that there may be a big impact on the world’s electronics manufacturing market.
Taiwan’s Foxconn is the world’s largest electronics manufacturer and signed an agreement with Vedanta to develop semiconductor and display manufacturing plans in Gujarat. But a statement from the company said that ‘Foxconn believes that it will not be able to proceed with the joint venture with Vedanta. Foxconn also said the company has begun removing its name from the joint venture. Now this project will be fully known as Vedanta. However, it is still not clear why this company delayed the agreement. The company did not say anything other than this small statement.
After the agreement between the two parties, Vedanta Chairman Anil Aggarwal said that this plant will bring a new direction in semiconductor manufacturing. Materials can be found within affordability. At the same time, his appeal to the youth of the country was to become chip makers instead of chip takers. But in both cases, Vedanta had to suffer a big blow. At that time he said that the two companies plan to work together for 10 years. He also claimed that India is moving through Silicon Valley as its first step.
The central government had a lot of dreams about these two organizations working together. But experts believe that India’s Silicon Valley project has also suffered a setback due to Foxconn’s sudden exit from the contract.