In a recent development, Foxconn’s decision to withdraw from its $19.5 billion semiconductor joint-venture with Vedanta will not have any significant impact on India, according to Union Minister Ashwini Vaishnaw. In an exclusive interview with Network 18, Vaishnaw assured that both companies remain fully committed to India’s semiconductor mission and the Make In India initiative.
The withdrawal of Foxconn, a Taiwanese multinational electronics contract manufacturing company, from the joint venture with Indian metals-to-oil conglomerate Vedanta is viewed as a setback to the government’s chipmaking ambitions. However, Minister Vaishnaw’s statement aims to allay concerns and reinforce the commitment of both companies to India’s semiconductor industry and manufacturing sector.
Despite the withdrawal, opposition leaders have criticized the BJP-led government over the issue. Shiv Sena leader Aditya Thackeray, in a tweet, expressed his disappointment, stating that the project was feasible in Maharashtra and questioning the reasons behind its relocation to Gujarat. He emphasized that Maharashtra could have been the driving force behind India’s growth story in this sector.
Rajya Sabha MP Priyanka Chaturvedi also voiced her opinion, suggesting that the decision to move the project from Maharashtra to Gujarat, which was deemed unfavorable for the semiconductor industry by experts, and the inability to secure expected funds contributed to the collapse of the project even before it began.
Congress leader Jairam Ramesh joined the criticism, recalling the promises made at the time of announcing the project and highlighting the fate of many memorandums of understanding signed during Vibrant Gujarat summits. He expressed skepticism regarding the Gujarat Model and urged caution when it comes to manufactured headlines.
In response to the situation, Hon Hai Technology Group, also known as Foxconn, released an official statement explaining that the decision to withdraw from the joint venture with Vedanta was made to explore other diverse development opportunities. Vedanta, on the other hand, emphasized its commitment to growing its Semiconductor team and its possession of a license for production-grade technology for 40nm chips from a prominent Integrated Device Manufacturer (IDM). The company stressed that India continues to be important in reshaping global semiconductor supply chains.
While the withdrawal of Foxconn from the joint venture is a setback, Minister Ashwini Vaishnaw’s assurance and the commitment of both companies to India’s semiconductor industry indicate that efforts will continue to drive growth and innovation in the sector. The government, along with industry stakeholders, will likely explore alternative opportunities to strengthen India’s position in the global semiconductor market and attract investments in the future.
