NEW DELHI: Vedanta’s ambitious semiconductor bid with Taiwanese contract major Foxconn failed to take off as the foreign partner opted out of the venture over their failure to rope in a technology provider for the sophisticated chip and glass manufacturing business.
While the Vedanta group maintained that it remains “fully committed” to the project and claimed to have “lined up” new partners, ministers Ashwini Vaishnaw and Rajeev Chandrasekhar maintained that the break-up will not impact India’s semiconductor efforts or the individual business plans of the two companies.
The two companies had announced a mega $19. 5 billion plan for a semiconductor foray after the Indian government had come out with a lucrative $10 billion incentive package for those willing to invest but could not come up with a concrete and committed plan for kickstarting production.
“In order to explore more diverse development opportunities, according to mutual agreement, Foxconn has determined it will not moveforward on the joint venture with Vedanta,” Foxconn said in a statement, adding that it is working to remove its name from what now is a fullyowned 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 statement said that for over a year, Hon Hai Technology Group and Vedanta 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 said.
Vedanta, which organised some sort of a restructuring last week but did not disclose the split, sought to suggest that its plan, which has been in the pipeline for years, is on track. “Vedanta reiterates that it is fully committed we have lined up other partners,” the Anil Agarwal-run company said.
While the Vedanta group maintained that it remains “fully committed” to the project and claimed to have “lined up” new partners, ministers Ashwini Vaishnaw and Rajeev Chandrasekhar maintained that the break-up will not impact India’s semiconductor efforts or the individual business plans of the two companies.
The two companies had announced a mega $19. 5 billion plan for a semiconductor foray after the Indian government had come out with a lucrative $10 billion incentive package for those willing to invest but could not come up with a concrete and committed plan for kickstarting production.
“In order to explore more diverse development opportunities, according to mutual agreement, Foxconn has determined it will not moveforward on the joint venture with Vedanta,” Foxconn said in a statement, adding that it is working to remove its name from what now is a fullyowned 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 statement said that for over a year, Hon Hai Technology Group and Vedanta 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 said.
Vedanta, which organised some sort of a restructuring last week but did not disclose the split, sought to suggest that its plan, which has been in the pipeline for years, is on track. “Vedanta reiterates that it is fully committed we have lined up other partners,” the Anil Agarwal-run company said.