Semiconductor manufacturing company Foxconn has announced to break its agreement with the vendor to make semiconductors in India. Last year, Vedanta and Foxconn had announced to set up semiconductor and display production plants in Gujarat with an investment of $19.5 billion.
This news has come to the notice of the news agency Reuters. Foxconn issued a statement saying that Foxconn, a wholly owned subsidiary of Vedanta, is working to remove its name. Foxconn said that the company has decided not to go ahead with the joint venture with Vedanta.
Foxconn announces to break agreement with it’s vendor
Last year, when the disclosure came from Vedanta, it appeared that it was running the project. Later, the company clarified that it is taking forward the Vulcan event project. Last week, SEBI, the regulator of the stock market, announced the imposition of fine on Vedanta last week. SEBI said that the company has been made to appear as if the company has entered into a partnership with Foxconn, which is in violation of the regulations. On Friday, Vedanta had said that it would take over the holding company of the joint venture that had tied up with Foxconn to make semiconductors. The company had said that it would also take over the display grass manufacturing venture from Vulcan Investments.
Last year, Anil Agarwal’s Vedanta decided to set up a semiconductor and display manufacturing project in Gujarat in association with Foxconn. Vedanta group got financial and non-financial subsidy from Gujarat government to set up semiconductor plant, in addition to capital expenditure, permission was also given to provide cheap electricity.
Foxconn said that the company has full faith in the direction of India’s semiconductor development plan. And the company fully supports the Make in India goals of the Government of India and will meet the needs of the stakeholders through local partnerships.
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