Foxconn pulls out of $19.5 billion India chip joint venture

AppleInsiderAppleInsider
Posted:
in iPhone edited July 2023

Apple iPhone manufacturer Foxconn has ended its planned joint venture with India's Vedanta company, an almost $20 billion project to boost chip production in the country.




Foxconn was originally reported to have invest $118.7 million into the venture with Vedanta, a firm categorized as an oil-to-metals group. Now 16 months on, Reuters reports that Foxconn's investment rose to $19.5 billion -- and that Foxconn has quit the joint venture.

"Foxconn has determined it will not move forward on the joint venture with Vedanta," said a Foxconn spokesperson in a statement seen by Reuters.

No specific reason was given for pulling out of the project. However, Foxconn's spokesperson said that the company had worked with Vedanta for more than a year to bring "a great semiconductor idea to reality."

Foxconn says that the decision to end the joint venture was mutual. Vedanta is to now fully own the project.

Reuters has previously reported that the joint venture was struggling to negotiate a partnership with European chip maker STMicroelectronics.

India has lately been benefiting from Apple's suppliers moving to it from China. Prime Minister Narendra Modi has made chip manufacture an economic priority for the country, alongside other efforts to work with firms such as Apple.

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Comments

  • Reply 1 of 8
    waveparticlewaveparticle Posts: 1,497member
    What is the role of Foxconn in this project? 
  • Reply 2 of 8
    danoxdanox Posts: 2,875member
    What is the role of Foxconn in this project? 
    Showing the Indians how to do it, and spending their own money doing it, Vedanta is a shell company….. it is years away from being viable basically because it doesn’t exist yet.

    https://www.reuters.com/technology/foxconn-pulls-out-india-chip-jv-with-vedanta-2023-07-10/
    ronn
  • Reply 3 of 8
    waveparticlewaveparticle Posts: 1,497member
    danox said:
    What is the role of Foxconn in this project? 
    Showing the Indians how to do it, and spending their own money doing it, Vedanta is a shell company….. it is years away from being viable basically because it doesn’t exist yet.

    https://www.reuters.com/technology/foxconn-pulls-out-india-chip-jv-with-vedanta-2023-07-10/
    LOL I have great respect for the most populous country in the world. With so many Indian-born CEO in the largest American companies, why India does not have talent to do it by itself? 
  • Reply 4 of 8
    stevenozstevenoz Posts: 314member
    "Foxconn's investment rose to $19.5 billion"

    So...what happens to that $19.5 billion investment now? 

    Did     Vedanta reimburse Foxconn?
     
  • Reply 5 of 8
    FileMakerFellerFileMakerFeller Posts: 1,546member
    stevenoz said:
    "Foxconn's investment rose to $19.5 billion"

    So...what happens to that $19.5 billion investment now? 

    Did Vedanta reimburse Foxconn?
     
    My guess is that Foxconn just became Vedanta's biggest shareholder.
    watto_cobra
  • Reply 6 of 8
    ronnronn Posts: 658member
    Foxconn totally bailed before disaster:


    FOXCONN PULLS THE PLUG!

    Foxconn Says It Will Not Move Forward On The Joint Venture With Vedanta

    Foxconn Says It is Working To Remove The Foxconn Name From What Now Is A Fully-Owned Entity Of Vedanta

  • Reply 7 of 8
    danoxdanox Posts: 2,875member
    The new Vedanta plant is located in Gujarat the home state of the Prime Minister of India Narendra Modi. What could go wrong?
    ronn
  • Reply 8 of 8
    paraeekerparaeeker Posts: 73member
    There are a great many challenges to semiconductor production in India that don’t exist in China. Raw materials, labour, transportation, breadth and depth of supply chains, etc. The list is long. 

    That’s also why you don’t see a lot of consumer electronic products coming from India. 

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