Foxconn Announces Withdrawal from Semiconductor Plan in India, Exits Joint Venture with Vedanta
Date: July 11, 2023
(Shenzhen), (2023.07.11) - Foxconn Technology Group (Foxconn) announced today its decision to withdraw from its semiconductor plan in India and dissolve its joint venture with Vedanta Limited (Vedanta). This decision marks a significant strategic shift for Foxconn in the Indian market.
Foxconn, a globally renowned electronics manufacturing services company, has been dedicated to semiconductor research and production worldwide through its semiconductor division. However, due to market conditions and business considerations, Foxconn has decided to exit the Indian market.
A spokesperson for Foxconn stated, "India has always been an important market for Foxconn, and we had planned to establish a semiconductor manufacturing base in India through our partnership with Vedanta. However, after careful evaluation and strategic realignment, we have decided to withdraw from this plan."
It is understood that Foxconn and Vedanta signed a joint venture agreement last year with the aim of jointly investing and operating semiconductor production facilities in India. However, due to the rapid changes in the semiconductor market and the turbulence in the global supply chain, Foxconn has decided to reevaluate its business strategy in India.
This decision poses a significant setback for the Indian government and the semiconductor industry. India has been striving to attract foreign investment and promote the development of domestic semiconductor manufacturing to reduce dependence on imported chips. Foxconn's withdrawal will present certain challenges to achieving these goals in India.
However, the Foxconn spokesperson also emphasized that the company will continue to maintain close contact with its partners in India and expand its business in other areas. Foxconn will explore other opportunities to meet evolving market demands and business strategies.
Following Foxconn's announcement of its withdrawal from the semiconductor plan, the Indian government stated its commitment to continue attracting more foreign investment and create a more favorable investment environment for the semiconductor industry. The government will also intensify efforts to promote the development of indigenous semiconductor technology to maintain competitiveness and technological autonomy.
Overall, Foxconn's exit from the semiconductor plan in India and the dissolution of the joint venture with Vedanta signifies a strategic realignment for the company in the Indian market. This decision will have an impact on India's semiconductor industry and foreign investment while providing Foxconn an opportunity to reevaluate its global business strategy.
Need Help?
