Foxconn has withdrawn from a $19.5 billion joint venture with Vedanta Ltd to establish semiconductor manufacturing facilities in India.

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

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Vedanta's shares have experienced an 11% decline year-to-date following the news of Foxconn's withdrawal.

Vedanta has acquired 100% ownership of Vedanta Foxconn Semiconductors Private Limited and Vedanta Displays.

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The Indian government has implemented a modified semiconductor programme, offering increased fiscal incentives for semiconductor and display fabs.

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Vedanta's joint venture was planning to manufacture chips of 40nm and later transition to 28nm with a monthly capacity of 40,000 wafers.

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The joint venture was exploring the possibility of a third equity partner, potentially including STMicroelectronics.

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Talks with potential partners have stalled due to disagreements over technology transfer, the duration of the joint venture, and investment contributions.

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Vedanta aims to fulfill the Prime Minister's vision for semiconductors and reposition global semiconductor supply chains.

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