Foxconn Shocks India: Why did it Abandon another Big Factory Deal?

Last year, famous iPhone assembler Foxconn made a joint venture worth $19.5 billion with Vedanta to build a semiconductor factory in India. In a recent astonishing development, Foxconn dropped out of the deal with the Indian company, according to a source.

In response to the cancellation of the deal, Foxconn offered a strange explanation to a media outlet. The company remarked,

Foxconn has determined it will not move forward on the joint venture with Vedanta. The deal was ended mutually.

On the other hand, in a statement, Vedanta said that it has “lined up other partners” to establish the semiconductor factory.

The Foxconn-Vedanta deal cancellation is a setback for the Indian PM’s economic growth efforts for the country and especially for his home state of Gujarat, where he was planning to build the factory. It is pertinent to mention here that Foxconn is still running other facilities in India, including one in Sriperumbudur, where it’s assembling the iPhone 14 models.

Smartphone manufacturers such as Apple have been working with more supply partners to diversify manufacturing outside mainland China because of the tensions between the US & its biggest Asian foe. Particularly, India is a market that Apple has been trying to exploit with the company launching its first Indian retail stores in Mumbai and New Dehli.

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