In Gujarat, the joint venture between Vedanta and Foxconn, aimed at setting up a semiconductor plant worth ₹1.54 lakh crore in Dholera, has been shattered. Following financial disagreements with Vedanta, Foxconn has now completely separated from the partnership. This development has caused a major setback to the agreements made in Gujarat. According to sources from the state government, Foxconn will now independently proceed with the investment in Gujarat.
Foxconn is Separated From Vedanta
Government sources reveal that just a month ago, a delegation from the Gujarat government met with representatives of Foxconn in Taiwan. While American chip giant Micron had already decided to enter Gujarat independently, Foxconn will also enter Gujarat alone. The final agreement for this will be reached by September, during the completion of the IPO of over 154 billion rupees. The Gujarat government had initially made arrangements for this in September, but after the agreement reached between Vedanta and Foxconn by the Indian government, they did not receive permission to establish the plant as a technology partner.
Foxconn to Begin Plant with Technology Partner
Foxconn lacks chip manufacturing experience, so it will have to establish the plant with a technology partner. Vedanta, on the other hand, is in the process of collaborating with another technical expert chip manufacturing company independently, which will be separately presented before the Indian government, as per Gujarat government sources. Companies that have previously signed MOUs but are currently sitting idle are like sunk investments.
Foxconn withdraws from the Vedanta chip plant joint venture in Gujarat, opting for an independent setup. The separation causes setbacks to the agreements made in Gujarat, while Vedanta collaborates with another chip manufacturing company. Foxconn plans to establish the plant with a technology partner, and the Gujarat government awaits the final agreement by September.