Rajeev Chandrasekhar, the minister of state for electronics and IT, stated on Monday that the intention of India to build semiconductor fabrication plants will not be affected by Foxconn’s decision to leave a joint venture with Vedanta.
“Foxconn’s decision to end its joint venture with Vedanta has no bearing on India’s Semiconductor Fab goals. None,” Chandrasekhar wrote in a tweet, adding that both businesses are respected investors who are fostering employment creation and major investments in India.
Vedanta, a company supported by billionaire Anil Agarwal, and Foxconn announced in September of last year that they will establish India’s first electronic chip manufacturing facility in Gujarat with an estimated investment of USD 1.5 lakh crore.
Ashwini Vaishnaw, the Union Minister for Electronics and IT, also posted on Twitter to reaffirm Foxconn and Vedanta’s commitment to the Make-in-India initiative and the nation’s semiconductor mission.
It’s not for the government to get into why or how two private companies choose to partner or choose not to, continued Chandrasekhar. He said that the separation means that both companies can and will now pursue their strategies in India independently, and with appropriate technology partners in Semicon and Electronics.
According to the tweet, Vedanta recently filed a proposal for a 40 nm fab through the joint venture VFSL (Vedanta-Foxconn Semiconductors Limited), which is currently being assessed by the government’s Semicon India Tech Advisory Council. The proposal is supported by a technology licensing agreement from a global semiconductor giant.