Foxconn has withdrawn from a $19.5 billion joint venture with Vedanta Ltd to establish semiconductor manufacturing facilities in India.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.
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.
The Indian government has implemented a modified semiconductor programme, offering increased fiscal incentives for semiconductor and display fabs.
Vedanta's joint venture was planning to manufacture chips of 40nm and later transition to 28nm with a monthly capacity of 40,000 wafers.
The joint venture was exploring the possibility of a third equity partner, potentially including STMicroelectronics.
Talks with potential partners have stalled due to disagreements over technology transfer, the duration of the joint venture, and investment contributions.
Vedanta aims to fulfill the Prime Minister's vision for semiconductors and reposition global semiconductor supply chains.
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