 "Foxconn pulls out of semiconductor joint venture with Vedanta Ltd")
Taiwan's Foxconn said on Monday it is pulling out of a joint venture (JV) with metals-to-oil conglomerate Vedanta Ltd that was set up to produce semiconductors from India, according to news agency Reuters.
"Foxconn is working to remove the Foxconn name from what now is a fully-owned entity of Vedanta," the electronics manufacturer said in a statement.
Foxconn and Vedanta signed a pact last year to invest $19.5 billion to set up semiconductor and display production plants in Gujarat, seeking to tap into the country's plans to become an electronics major.
However, the project was proceeding slowly as talks to rope in European chipmaker STMicroelectronics as a partner got deadlocked, Reuters reported last month.
Moreover, Vedanta's disclosures last year related to the deal made it seem like it was running the project. It later clarified that Volcan Investments would take the helm. Still, India's market regulator, after an investigation, penalised Vedanta last week, saying it had broken regulations by initially making it appear it had partnered with Foxconn.
On Friday Vedanta said that it would take over from its holding company the ownership of a JV with Taiwan's Foxconn that was set up to make semiconductors.
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Vedanta also said it would also take over a display glass manufacturing venture from Volcan Investments, Vedanta's holding company.
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.