Foxconn said on Monday it is pulling out of a joint venture with Taiwan’s Foxconn said on Monday it has withdrawn from a $19.5 billion semiconductor joint venture with Indian metals-to-oil conglomerate Vedanta Ltd that was set up to make semiconductors from India. Foxconn says not proceeding with Vedanta JV on mega semiconductor plan. “Foxconn is working to remove the Foxconn name from what now is a fully-owned entity of Vedanta

Foxconn, which did not say why it had taken the decision, and Vedanta signed a pact last year to set up semiconductor and display production plants in Gujarat.

Foxconn has determined it will not move forward on the joint venture with Vedanta. Foxconn is working to remove the Foxconn name from what now is a fully-owned entity of Vedanta,” it said in a statement.

Meanwhile, after Foxconn’s withdrawal from chip JV, Vedanta says it has lined up other potential partners to set up India’s first foundry. After Foxconn’s withdrawal from chip JV, Vedanta says it has lined up other potential partners to set up India’s first foundry.

“Vedanta reiterates that it is fully committed to its semiconductor fab project and we have lined up other partners to set up India’s first foundry. We will continue to grow our Semiconductor team, and we have the license for production-grade technology for 40 nm from a prominent Integrated Device Manufacturer (IDM),” Vedanta said in a statement.

Earlier the Anil Agarwal-led Vedanta Group said  that it will acquire 100 per cent stake in semiconductor and display units from sister concern Twin Star Technologies, the conglomerate. Twin Star Technologies is a wholly-owned subsidiary of Volcan Investments Limited which is the ultimate holding company of Vedanta Limited.

The new structure will make Vedanta India’s first company in Integrated Semiconductor and Display Fab Business.

“The Board of Directors at their meeting held today, July 7, 2023, have considered and approved the acquisition of 100 per cent of Vedanta Foxconn Semiconductors Private Limited (VFSPL) and Vedanta Displays Limited (VDL), wholly owned subsidiaries of Twin Star Technologies Limited (TSTL) via share transfer at face value,” Vedanta said in a regulatory filing.

The transaction is expected to close during the ongoing quarter.

With this restructuring, Vedanta Limited announced the addition of semiconductors and display glass manufacturing ventures to its diversified portfolio.