Foxconn and the Indian Government had concern over the financials of Vedanta, which is said to be a potential reason why the Taiwanese company parted ways with Vedanta on the joint venture of chip making as per report by Reuters.
Vedanta’s London based parent company, Vedanta Resources has been under a constant debt rise.
In its statement to Reuters, Vedanta said that it is in a “comfortable” financial position and there was “no basis” on such speculations.
The Indian Information Technology ministry did not comment over the split. Various rating agencies downgraded Vedanta Resources on the ground that the firm is in the risk of debt defaults.
Debarring the reports, Vedanta Chairperson Anil Agarwal said, “There have been no defaults on debts from the group.”
Meanwhile, Foxconn on Tuesday said it plans to apply for incentives that India is offering under its semiconductor manufacturing policy. This comes a day after the company parted ways with Vedanta on a $19.5 billion chip making joint venture.
“Foxconn is committed to India and sees the country successfully establishing a robust semiconductor manufacturing ecosystem,” the company said.
“Foxconn is working toward submitting an application.” It added.
Yesterday, Foxconn withdrew from its semiconductor joint venture with Indian conglomerate Vedanta Group, which is a major setback to Prime Minister Narendra Modi’s plans to manufacture semiconductor chips in the country.
“There was recognition from both sides that the project was not moving fast enough” and there were other “challenging gaps we were not able to smoothly overcome, without sharing details.” Foxconn said on Tuesday.
“This is not a negative”, company added in the statement.
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