Foxconn to apply for chipmaking incentives after pulling out of $19.5 billion Vedanta JV

Foxconn is working to submit a revised application under the India Semiconductor Mission, the company said on Tuesday.

In a statement, the Taiwanese electronics manufacturing giant said that it had “sound channels of communications with government stakeholders across India” and that it remained committed to India.

“We welcome a diverse set of stakeholders, both inside India and abroad, who also want to see India get to the next level and can complement Foxconn’s world-class supply chain management and manufacturing efficiency,” the company said in a statement.

Foxconn, however, refused to name the partner it had tied up with.

“We understand there is a lot of interest in Foxconn’s plans and India’s information ecosystem is porous. However, due to the competitive and sensitive issues involved in negotiating large scale investments, Foxconn is unable to disclose more information at this time,” the company said.

On Monday, the Taiwanese contract manufacturer said it had decided to terminate its joint venture agreement with India’s Vedanta group to “explore more diverse development opportunities,”.

Hon Hai Technology Group (Foxconn) and Anil Agarwal-led Vedanta had announced their joint venture to manufacture chips and display panels in India in February 2022, making it one of the first few participants in the government’s strategically crucial India Semiconductor Mission.

Foxconn’s Taipei listed shares closed up 0.5% on Tuesday, underperforming the broader market which ended up 1.5%. Vedanta Ltd shares fell as much as 2.6% in Mumbai, before paring some losses.