Trending News

Vedanta Shares: Foxconn Withdraws from Joint Venture

Vedanta Shares: In recent news, the shares of Vedanta are expected to experience increased market attention due to Foxconn’s decision to pull out of a $19.5 billion joint venture with Vedanta Ltd. The joint venture aimed to establish semiconductor manufacturing facilities in India. While Foxconn has decided not to move forward with the partnership, Vedanta remains committed to its semiconductor fab project and has already lined up alternative partners. This article will delve into the details of the joint venture and its implications for Vedanta and the semiconductor industry in India.

Vedanta Shares: Background of the Joint Venture

The joint venture between Vedanta Ltd and Foxconn aimed to establish semiconductor manufacturing facilities in India. Vedanta, led by Anil Agarwal, sought to fulfill the Prime Minister’s vision for semiconductors and contribute to repositioning global semiconductor supply chains. The joint venture planned to manufacture chips of 40nm and later transition to 28nm, with a factory line capacity of 40,000 wafers per month.

Vedanta Shares: Foxconn’s Withdrawal

Foxconn recently announced its decision not to proceed with the joint venture with Vedanta. The company stated that it would remove the Foxconn name from the entity, which is now fully owned by Vedanta. This withdrawal has raised concerns and attracted significant market attention, as Foxconn is a prominent player in the semiconductor industry.

Vedanta Shares: Vedanta’s Commitment to the Semiconductor Fab Project

Despite Foxconn’s withdrawal, Vedanta remains fully committed to its semiconductor fab project. A spokesperson for Vedanta stated that the company has redoubled its efforts to fulfill the Prime Minister’s vision for semiconductors. Furthermore, Vedanta has already lined up alternative partners to proceed with the establishment of India’s first foundry.

Vedanta Shares: Share Performance of Vedanta

The news of Foxconn’s withdrawal had an immediate impact on Vedanta’s share performance. Year-to-date, Vedanta’s shares have experienced an 11% decline, contrasting with a 1.58% drop in the BSE Metal index during the same period. The market closely watches the developments related to the joint venture, as they can significantly influence Vedanta’s market position and future prospects.

Vedanta Shares: Acquisition of Vedanta Foxconn Semiconductors Private Limited

In a significant move, Vedanta’s board approved the acquisition of 100% ownership in Vedanta Foxconn Semiconductors Private Limited and Vedanta Displays. These entities are wholly owned subsidiaries of Twin Star Technologies Limited, which is itself a subsidiary of Volcan Investments Limited—the ultimate holding company of Vedanta Limited.

Vedanta Shares: Government’s Modified Semiconductor Programme

Under the modified semiconductor programme, the Indian government has increased fiscal incentives to encourage the establishment of semiconductor fabs and display fabs in the country. The incentives now cover 50% of the project cost for setting up semiconductor fabs and display fabs of specified technologies. This initiative aims to attract investments and promote the development of a robust semiconductor industry in India.

Vedanta Shares: Search for Third Equity Partner

According to a note by Morgan Stanley, the Vedanta Foxconn JV has been exploring the possibility of a third equity partner. One potential partner under discussion is STMicroelectronics, which would also provide valuable technological expertise. However, talks have reportedly stalled due to disagreements regarding the scope of technology transfer, the duration of the joint venture, and the investment contributions from Vedanta.

Conclusion

The decision by Foxconn to withdraw from the joint venture with Vedanta has caused ripples in the semiconductor industry. Despite this setback, Vedanta remains fully committed to its semiconductor fab project and has secured alternative partners to move forward. The shares of Vedanta are closely monitored by investors and industry observers, as the company’s success in establishing India’s first foundry could have far-reaching implications for the country’s semiconductor ecosystem.

For more updates follow Allinfohere

FAQs

How has the news of Foxconn’s withdrawal affected Vedanta’s shares?

Following the announcement, Vedanta’s shares experienced an 11% decline year-to-date.

Is Vedanta still committed to its semiconductor fab project?

Yes, Vedanta remains fully committed to its semiconductor fab project and has lined up alternative partners.

What is the Indian government’s modified semiconductor programme?

The government’s modified programme offers increased fiscal incentives for setting up semiconductor and display fabs in India.

Has Vedanta acquired Vedanta Foxconn Semiconductors Private Limited?

Yes, Vedanta’s board has approved the acquisition of 100% ownership in Vedanta Foxconn Semiconductors Private Limited.

Has Vedanta identified a third equity partner for the joint venture?

Discussions with potential partners, including STMicroelectronics, are ongoing, but progress has been limited due to various disagreements.

Ankit Singh

Recent Posts

Chaitra Navratri 2024 : नवरात्रि के सातवे दिन माँ कालरात्रि को प्रसन्न करने के लिए ऐसे करें पूजा

नवरात्रि के नौ पवित्र दिनों में से प्रत्येक दिन एक अलग देवी को समर्पित होता…

8 months ago

Kamada Ekadashi 2024 :कामदा एकादशी पर पैसे की तंगी से छुटकारा पाने के लिए कामदा एकादशी के उपाय

कामदा एकादशी, हिंदू धर्म में एक महत्वपूर्ण व्रत और उत्सव है। यह भगवान विष्णु को…

9 months ago

October Amavasya 2024 :आश्विन अमावस्या 2024 कब है, तिथि और सुख-समृद्धि प्राप्त करने के उपाय

आश्विन अमावस्या, हिंदू धर्म में एक महत्वपूर्ण दिन माना जाता है. यह हिंदू पंचांग के…

9 months ago

Mata ki Chunari : देवी मां की पूजा में क्यों चढ़ाई जाती है चुनरी ? जाने चुनरी चढ़ाने से होने वाले 6 लाभ

हिंदू धर्म में देवी मां की पूजा का विशेष महत्व है। पूजा की विधि विधान…

9 months ago