ALBAWABA - Foxconn, the largest iPhone manufacturer worldwide, has dealt a severe blow to India's ambitions in semiconductor chip production by scrapping its $20 billion project.
The Taiwanese electronics giant made the unexpected announcement on Monday, citing delays and unresolved issues with Indian company Vedanta as reasons for its decision.
Although Vedanta has indicated ongoing discussions with other potential partners for establishing a semiconductor chip production facility.
Foxconn's sudden withdrawal has had a detrimental impact on India's chip production goals. However, Indian officials, including Rajeev Chandrasekhar, the Deputy Minister of Information Technology, have defended Foxconn's move, assuring that it will not hinder the country's semiconductor chip production plans.
India's "Make in India" initiative, launched by Prime Minister Narendra Modi in 2014, aims to position the country as a global manufacturing hub, including the production of domestic semiconductor chips.
Undisclosed sources suggest that disagreements and delayed funding disbursements played a role in the breakdown of the Foxconn deal.
In a separate development, US chipmaker Micron recently announced an $825 million investment for establishing a factory as part of the "Make in India" project. The project, slated to commence in Gujarat later this year, is expected to create employment opportunities for approximately 20,000 individuals.
