Foxconn Ends Vedanta Semiconductor Partnership, Cancels Rs 1.61 Lakh Crore Project

Foxconn Withdraws From Joint Venture

New Delhi:-Taiwan’s Foxconn has officially ended its semiconductor joint venture with Vedanta, bringing an end to the proposed Rs 1.61 lakh crore investment project planned in Gujarat. The companies confirmed that they have mutually agreed to dissolve the partnership, which was expected to establish semiconductor and display manufacturing facilities in India.

The decision marks a significant development for India’s semiconductor sector, as the project was considered one of the country’s biggest manufacturing initiatives in the electronics industry.

Government Says Chip Mission Remains Unaffected

Reacting to the announcement, Union Minister of State for Electronics and Information Technology Rajeev Chandrasekhar said the collapse of the joint venture would not affect India’s long term goal of becoming a global semiconductor manufacturing hub.

The government reiterated that its semiconductor mission remains on track and that efforts to strengthen domestic chip production will continue despite the setback.

Vedanta to Explore New Partnerships

Following the separation, Vedanta is expected to continue its semiconductor plans by holding discussions with other potential technology partners. Foxconn, meanwhile, said it would look for alternative local partnerships to support semiconductor supply in India, although it did not specify the reasons behind its decision to exit the joint venture.

The companies had originally planned to manufacture both semiconductor chips and display panels through the proposed facility.

Gujarat Won the Investment Race

Before selecting Gujarat, several states including Karnataka, Maharashtra and Telangana had competed to host the manufacturing project. During the selection process, the joint venture reportedly sought major incentives, including nearly 1000 acres of land on a 99 year lease without cost, along with concessional rates for electricity and water for 20 years.

After Gujarat agreed to these proposals, the companies announced plans to establish the semiconductor and display manufacturing unit near Ahmedabad.

India Continues Push for Chip Manufacturing

India has been working to reduce its dependence on imported semiconductor components through the Production Linked Incentive scheme, which encourages domestic manufacturing of electronics and mobile devices while creating employment opportunities.

Although China and Taiwan continue to dominate the global semiconductor industry, the government has identified chip manufacturing as a strategic priority. India’s semiconductor market, valued at around Rs 1.12 lakh crore in 2020, is projected to grow significantly and could reach nearly Rs 5 lakh crore by 2026.