Foxconn to apply for India chipmaking incentives after breaking up with Vedanta

By ReutersTaiwan’s Foxconn (2317.TW) said on Tuesday it plans to apply for incentives that India is offering under its semiconductor manufacturing policy, a day after the company parted ways with Vedanta on a $19.5 billion chipmaking joint venture.

“Foxconn is committed to India and sees the country successfully establishing a robust semiconductor manufacturing ecosystem,” the company said.

“Foxconn is working toward submitting an application.”

On Monday, Foxconn withdrew from its semiconductor JV with Indian metals-to-oil conglomerate Vedanta, in a setback to Prime Minister Narendra Modi’s chipmaking plans for India.

ALSO READ | Never trust fixed headlinesCongress after Foxconn dumps $19.5 billion chip plan

Foxconn said on Tuesday “there was recognition from both sides that the project was not moving fast enough” and there were other “challenging gaps we were not able to smoothly overcome”, without sharing details.

“This is not a negative,” Foxconn said in a statement.

Foxconn’s Taipei listed shares closed up 0.5% on Tuesday, underperforming the broader market (.TWII) which ended up 1.5%. Vedanta Ltd shares fell as much as 2.6% in Mumbai, before paring some losses.