Will table white paper on Maharashtra missing out on Vedanta-Foxconn project in monsoon session, says Uday Samant

Pic/Uday Samant’s team

The Maharashtra government will table a white paper on circumstances in which the Vednata-Foxconn project went outside the state in the monsoon session of the legislature, state Industries Minister Uday Samant told news agency PTI on Tuesday.

"We will present a white paper on reasons behind the semiconductor project of Vedanta-Foxconn went outside Maharashtra. We are working on it and it will be tabled in the monsoon session starting July 17," Uday Samant was quoted as saying by PTI.

The minister said he was studying the factors based on which Foxconn announced its decision.

"I cannot comment on it without any proper information in my hand," he said.

Foxconn on Monday announced withdrawal from its chip-making JV with Indian conglomerate Vedanta.

Taiwan's Foxconn has withdrawn from a USD 19.5 billion semiconductor joint venture with mining baron Anil Agarwal's Vedanta Ltd as the venture struggled to get a technology partner to make chips that are used in mobile phones to refrigerators and cars.

In a statement, Foxconn, the world's largest contract electronics maker, said it "has determined it will not move forward on the joint venture with Vedanta."

Agarwal's metals-to-oil conglomerate responded saying it was "fully committed" to its semiconductor fab project and we have lined up other partners to set up India's first foundry.

It however did not give details of the new partners.

Foxconn, best known for assembling iPhones and other Apple products, and Vedanta last year signed a pact to set up semiconductor and display production plants in Gujarat.

European chipmaker STMicroelectronics was being roped in as a technology partner for the venture but talks were deadlocked.

Most of the world's chips are manufactured in a handful of countries and India, which expects its semiconductor market to be worth USD 63 billion by 2026, is a late entrant.

Three applications - one from the Vedanta-Foxconn joint venture, another from a global consortium of ISMC and one from Singapore-based IGSS Ventures - were received in response to the government's incentive scheme for local manufacture of semiconductors.

Just last week, Vedanta announced that it will acquire the semiconductor and display glass units from group company Twin Star Technologies Ltd.

It is to buy 100 per cent of Vedanta Foxconn Semiconductors Pvt and Vedanta Displays Ltd from Twin Star, a unit of Vedanta's ultimate parent Volcan Investments Ltd.

In a statement on Monday Foxconn said: "In order to explore more diverse development opportunities, according to mutual agreement, Foxconn has determined it will not move forward on the joint venture with Vedanta.."

Foxconn said it is "working to remove the Foxconn name from what now is a fully-owned entity of Vedanta".

"Foxconn has no connection to the entity and efforts to keep its original name will cause confusion for future stakeholders," Hon Hai Technology Group (Foxconn) said.

The statement said that for over a year, Hon Hai Technology Group (Foxconn) and Vedanta have worked hard to bring a great semiconductor idea to reality. It has been a fruitful experience that can position both companies strongly going forward.

"Foxconn is confident about the direction of India's semiconductor development. We will continue to strongly support the government's 'Make In India' ambitions and establish a diversity of local partnerships that meet the needs of stakeholders," it said.

After the withdrawal, Vedanta asserted that it is fully committed to its semiconductor project and has lined up other partners to set up India's first foundry.

Vedanta said that it has redoubled efforts to fulfill Prime Minister Narendra Modi's vision for semiconductors and affirmed that India remains pivotal in repositioning global semiconductor supply chains.

"Vedanta reiterates that it is fully committed to its semiconductor fab project and we have lined up other partners to set up India's first foundry. We will continue to grow our semiconductor team, and we have the license for production-grade technology for 40 nm from a prominent Integrated Device Manufacturer (IDM)," Vedanta said in a statement.

The company had announced plans to set up its chip plant in Gujarat with an investment of around Rs 1.5 lakh crore.

"We will shortly acquire a license for production-grade 28 nm as well. Vedanta has redoubled its efforts to fulfill the prime minister's vision for semiconductors and India remains pivotal in repositioning global semiconductor supply chains," the statement said.

(With inputs from PTI)