Last year, famed iPhone engineer Foxconn entered into a $19.5 billion joint venture with Vedanta to build a semiconductor manufacturing plant in India. In a recent astonishing development, Foxconn has dropped out of the deal with the Indian company, according to a source.
In response to the cancellation of the deal, Foxconn offered a strange statement to a media outlet. The company noted,
Foxconn has decided not to proceed with the joint venture with Vedanta. The deal was mutually terminated.
On the other hand, Vedanta said in a statement that it has “lined up other partners” to establish the semiconductor factory.
The cancellation of the Foxconn-Vedanta deal is a setback to the Indian Prime Minister’s economic growth efforts for the country and especially his home state of Gujarat, where he planned to build the plant. It is pertinent to mention here that Foxconn still runs other facilities in India, including one in Sriperumbudur where it assembles the iPhone 14 models.
Smartphone makers like Apple are teaming up with more suppliers to diversify production outside mainland China due to tensions between the US and its biggest Asian enemy. India in particular is a market that Apple is trying to exploit with the launch of the first Indian stores in Mumbai and New Dehli.