Taiwanese Apple supplier Foxconn has pulled out of a joint venture with Indian mining giant Vedanta to produce chips. “Both parties acknowledged that the project was not progressing fast enough,” Foxconn said Tuesday.
The lack of experience in semiconductor technology has been cited by India’s Entrepreneurship Minister as a factor in Foxconn’s withdrawal.
Billion dollar project
In 2022, Foxconn and Vedanta signed a letter of intent to build one of the first semiconductor and display manufacturing facilities in the Indian state of Gujarat for 1.54 trillion rupees (about 16.5 billion francs). That’s where Prime Minister Narendra Modi comes from.
Nokia production in India
A Vedanta spokesperson said, according to India’s Business Today magazine, “Vedanta has redoubled its efforts to deliver on the Prime Minister’s vision on semiconductors and India will continue to be at the center of the repositioning of global semiconductor supply chains.”
The Indian government aims to strengthen its domestic chip production and become an important part of the global semiconductor supply chain. It advertises incentives for investors.
Launched by Modi in 2014, the flagship Make in India program aims to transform the populous country into a global manufacturing hub that can compete with China.
Foxconn emphasized that they have been operating in India since 2006 – initially for Nokia’s production – and want to stay in the country. But building a robust semiconductor manufacturing ecosystem in India will take time.
Sources
- BBC.com: Foxconn: Apple supplier quits $20 billion factory plan in India (July 11)
(dsc/sda/awp/dpa)
Source: Watson
I’m Ella Sammie, author specializing in the Technology sector. I have been writing for 24 Instatnt News since 2020, and am passionate about staying up to date with the latest developments in this ever-changing industry.
