Foxconn has pulled out of a $19.5 billion joint venture with Indian multinational mining company Vedanta to build a chip factory in the country.
It entered into an agreement to build the semiconductor and display component production plant in Indian Prime Minister Narendra Modi's home state of Gujarat with Vedanta last year.
The Taiwan-based manufacturer and lead supplier for Apple Inc (NASDAQ:AAPL) said in a statement that the two parties had “mutually agreed to part ways.”
“There was recognition from both sides that the project was not moving fast enough,” Foxconn said. “There were challenging gaps we were not able to smoothly overcome, as well as external issues unrelated to the project.”
Foxconn, however, reiterated its commitment to India and establishing a robust semiconductor manufacturing ecosystem in the country, which comes at a time when customers like Apple are seeking to diversify their supply chains.
“Foxconn has no intention to do anything but continue to strongly support the government’s ‘Make in India’ ambitions,” the electronics maker said.
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