iPhone maker Foxconn has dropped plans to build a new semiconductor manufacturing plant in India, claiming the project was not moving forward fast enough.
To be situated in the state of Gujarat, Apple supplier Foxconn announced the US$19.5bn joint venture with local firm Vedanta less than a year ago.
At the time, it was seen as a major boost to India’s status as an emerging economic power.
"There were challenging gaps we were not able to smoothly overcome, as well as external issues unrelated to the project," Taiwan-based Foxconn said in a statement.
India has been pushing hard to be seen as an alternative to China and Taiwan for tech firms, largely through a US$10bn fund to encourage new entrants.
US chip giant Micron last month announced it was spending US$825mln on a semiconductor assembly and test facility, also in Gujarat.