After exiting the joint venture with Vedanta, Foxconn has released a statement saying that it believes that India will successfully establish a robust semiconductor manufacturing ecosystem and that the Foxconn group is committed to grow along with India Semicon
There has been a lot of speculation about Semicon India, after Foxconn pulled out of the Joint Venture it was supposed to enter with Vedanta, to set up India’s first semiconductor fabrication plant. Many experts saw this as a sign that Foxconn had lost trust in the Indian Government and Vedanta, and was trying to save itself from a sinking boat.
However, Foxconn has released a statement, clarifying their perspective, and more importantly, clarifying why the JV fell through, and that they are keen on setting up a fabrication unit in India. To that end, they are working towards submitting an application related to India’s semiconductor incentive scheme
What happened between Foxconn and Vedanta?
In the statement, Foxconn’s representative to India told the Indian press saying that both parties reached a mutual decision to separate, which should not be seen as a negative outcome. Both sides acknowledged that the project was progressing slower than desired and faced difficult obstacles that couldn’t be effectively resolved. Additionally, there were external factors unrelated to the project that contributed to the challenges.
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They also said, “We have seen some media reports portraying Foxconn’s withdrawal from the joint venture with Vedanta as a negative example of the Group’s investment integrity. That is absolutely not the case. When Foxconn course corrects, it is done only after heavy considerations on the near-term impact to our stakeholders, and on the long-term corporate health to the Group and our shareholders.”
They added, “Foxconn is committed to invest in India. We have no intention to do anything but continue to strongly support the government’s “Make In India” ambitions and establish a diversity of local partnerships that meet the needs of stakeholders.”
What’s next for Foxconn?
Apart from its ongoing manufacturing endeavours in India and setting up more smartphone factories, Foxconn plans to start making displays in India for smartphones and various other applications. It is preparing an application for the ‘Modified Programme for Semiconductors and Display Fab Ecosystem,’ that it will submit to the Indian Government.
“We have been diligently assessing potential partners to ensure the best possible collaboration. We encourage a wide range of stakeholders, both from India and abroad, who share our vision of taking India to new heights. We seek partners who can enhance Foxconn’s exceptional supply chain management and manufacturing efficiency,” they said.
What does this mean for Vedanta?
Although the termination of the joint venture between Vedanta and Foxconn is a notable development, it should not be viewed as a major setback for either company. Vedanta remains determined to establish India’s first semiconductor fabrication unit and has formed partnerships with other entities to support this endeavour. These new alliances will assist Vedanta in the establishment of the fabrication unit in a way that perhaps wasn’t possible with Foxconn.
Foxconn in their statement also said that they are completely withdrawing from the JV, and that it is now completely owned by Vedanta. “Foxconn has not injected capital or fixed assets into the JV,” they said.
