Categories: Technology

That’s why Foxconn is withdrawing from a billion-dollar project in India

India aims to become a global chip hub amid the tech war between the US and China. But Foxconn’s withdrawal is a serious blow, analysts say.

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.

“Foxconn’s surprise withdrawal is a major blow to India’s semiconductor ambitions.”

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

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