Foxconn withdraws from the $19.5 billion joint venture with India

Foxconn is a manufacturing partner of the Cupertino-based tech firm Apple. As per some recent pieces of information, Foxconn has ended its partnership with an Indian company. Reportedly, Foxconn and Indian company Vedanta were in talks about the chip production project. The project was estimated to be worth $20 billion. This project could have led to a boost in chip production in India.

According to the initial reports, Foxconn contributed $118.7 million to the joint venture with Vedanta, an organization categorized as an oil-to-metals company. After 16 months, Reuters reports that Foxconn has withdrawn from the joint venture. Notably, Foxconn’s investment increased to $19.5 billion. A spokesperson of the company told Reuters that the company has decided to withdraw from the joint collaboration with Vedanta.

There are no particular details for backing off from the project. The representative for Foxconn, meanwhile, said that the business has been collaborating with Vedanta for more than a year to “make a great semiconductor idea a reality.” Foxconn reports that it was a joint decision to end the project. Vedanta is now in complete charge of the project. According to Reuter’s report, the project was having trouble striking a deal with European chip manufacturer STMicroelectronics.

Recently, India has benefited from the relocation of Apple’s suppliers from China to India. Along with other initiatives to collaborate with companies like Apple, Prime Minister Narendra Modi has made the production of chips an economic priority for the nation.