👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

Timeline: Foxconn withdraws from $19.5 billion Vedanta chip plan in India

Published 07/10/2023, 08:17 AM
Updated 07/10/2023, 10:15 AM
© Reuters. FILE PHOTO: Foxconn logo is seen in this illustration taken, May 2, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
VEDL
-
2354
-

NEW DELHI (Reuters) - Taiwan's Foxconn said on Monday it had withdrawn from a joint venture with conglomerate Vedanta (NYSE:VEDL), in a blow to Indian Prime Minister Narendra Modi's chipmaking plans.

Here is a timeline of how events have unfolded since the signing of the $19.5 billion joint venture:

* Feb. 14, 2022: Foxconn partners with Vedanta to make semiconductors in India in a bid to diversify its business. Foxconn said it will be "a significant boost to domestic manufacturing of electronics in India".

* Sept. 13, 2022: Vedanta and Foxconn sign pacts to invest $19.5 billion to set up semiconductor and display production. Modi's home state Gujarat is selected for the facilities.

* Sept. 14, 2022: Vedanta's Anil Agarwal says the Indian metals-to-oil conglomerate does not see funding problems for the JV.

* May 19, 2023: Deputy IT minister Chandrasekhar tells Reuters the JV "struggling" to tie up with a technology partner.

* May 31, 2023: Reuters reports that Vedanta-Foxconn JV proceeding slowly as talks to involve STMicroelectronics are deadlocked. Vedanta-Foxconn had got on board STMicro for licensing technology, but India's government had made clear it wants the European chipmaker to have "more skin in the game", such as a stake in the partnership, a source with direct knowledge of the matter said.

© Reuters. FILE PHOTO: Foxconn logo is seen in this illustration taken, May 2, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

* June 30, 2023: India market regulator fines Vedanta for breaching disclosure rules by publishing a press release that made it appear it had partnered with Foxconn to make semiconductors in India, as the deal was with Vedanta's holding company.

* July 10, 2023: Foxconn drops Vedanta chip JV, without specifying a reason. "Foxconn has determined it will not move forward on the joint venture with Vedanta," it said, saying it had worked for more than a year on the project but the two sides had mutually decided to end the JV.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.