Foxconn Sends Reassurance to Indian Market After Deal Withdrawal

Foxconn recently announced its withdrawal from its joint partnership with Vedanta VJ, which brought a shock to India’s tech industry. This decision raised major concerns about India’s future as an aspiring chip-manufacturing hub, especially after Foxconn had made a commitment to invest in India towards this goal. However, the tech giant has reassured that it will uphold its commitment, but with a new partner instead of Vedanta JV. Their statement reads, “Foxconn is committed to India and sees the country successfully establishing a robust semiconductor manufacturing ecosystem.”
Foxconn has also stated that the reason behind their withdrawal is the slow rate with which their project was moving forward, which was reportedly mutually recognised by both parties, as per Times of India. The shares of Vedanta JV consequently fell by 2% after this announcement, as their cancelled joint project was projected to stand at $19.5 billion. While Foxconn has confirmed that it would continue to invest in chip manufacturing in India, it has not yet shared updates on which companies they are in talks with to take their investment ambitions ahead.

Image source: PTI