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Foxconn pulls out of US$ 20 bn deal with Vedanta
Foxconn cited "challenging gaps" and slow moving processes as reasons for pulling out of the deal
Taiwan-based Foxconn recently withdrew from a US$ 19.5 billion-dollar deal to jointly manufacture semiconductors in India with Indian mining giant Vendanta. The deal was called off 10 months after the companies signed a pact to set up a semiconductor and display production facility in Gujarat.
In an official statement, FoxConn shared that the decision to pull away from the deal was mutual, and “not a negative.” “There was recognition from both sides that the project was not moving fast enough. There were challenging gaps we were not able to smoothly overcome, as well as external issues unrelated to the project,” the statement read.
The company also responded to negative reports questioning its integrity after pulling out from the Vedanta deal. “When Foxconn course corrects, it is done only after heavy considerations on the near-term impact to our stakeholders, and on the long-term corporate health to the Group and our shareholders.”
The company assured that it fully intends to carry out investment in India despite the challenges presented by the fallen-apart deal. “Foxconn has no intention to do anything but continue to strongly support the government’s Make in India ambitions and establish a diversity of local partnerships that meet the needs of stakeholders.”
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