Foxconn to apply for India chipmaking incentives after $19.5 billion joint venture pullout with Vedanta

Taiwan’s Foxconn said on July 11, 2023 it plans to apply for incentives that India is offering under its semiconductor manufacturing policy, a day after the company parted ways with Vedanta on a $19.5 billion chipmaking joint venture

Taiwan's Foxconn said on Tuesday (July 11) it plans to apply for incentives that India is offering under its semiconductor manufacturing policy, a day after the company parted ways with Vedanta on a $19.5 billion chipmaking joint venture.

"Foxconn is committed to India and sees the country successfully establishing a robust semiconductor manufacturing ecosystem," the company said.

"Foxconn is working toward submitting an application."

On Monday (July 10), Foxconn withdrew from its semiconductor JV with Indian metals-to-oil conglomerate Vedanta, in a setback to Central government's chipmaking plans in the country.

Foxconn said on Tuesday (July 11) "there was recognition from both sides that the project was not moving fast enough" and there were other "challenging gaps we were not able to smoothly overcome", without sharing details.

"This is not a negative," Foxconn said in a statement.

Foxconn's Taipei listed shares closed up 0.5% on Tuesday (July 11), underperforming the broader market which ended up 1.5%. Vedanta Ltd shares fell as much as 2.6% in Mumbai, before paring some losses.