Vedanta will enter semiconductor market though Foxconn pulls out

India’s Vedanta will enter the market for the manufacturing of chips and displays this year, group chairman Anil Agarwal said, days after its joint-venture partner Foxconn pulled out of the $19.5 billion chipmaking project.
BE SemiconductorFoxconn separately said it aims to apply for incentives under India’s semiconductor production plan.

Anil Agarwal, in an address to the shareholders, said Vedanta will this year, subject to government approval, begin its foray to setup its semiconductor and display units.

After Foxconn pulled out, Vedanta said it has lined up partners for the venture, without giving any further details.

Volcan Investments, Vedanta’s holding company and Foxconn had signed a pact last year to set up semiconductor and display production plants in Prime Minister Narendra Modi’s home state Gujarat in western India, Reuters news report said.

Deadlocked talks on finalising European chipmaker STMicroelectronics as a tech partner, and delayed incentive approvals were among reasons for Foxconn’s pullout from the JV.