Foxconn, a leading supplier to Apple and a global manufacturing giant, has withdrawn from a joint venture worth $19.5 billion with Indian conglomerate Vedanta. The project aimed to establish semiconductor and display manufacturing facilities in the state of Gujarat, India.
The Taiwanese company stated that it decided not to proceed with the joint venture with Vedanta, and both parties reached a mutual agreement on this decision. This setback is significant for Indian Prime Minister Narendra Modi’s vision of transforming the country into a major high-tech manufacturing hub.
The move by Foxconn reflects the increasing pressure on Apple and other American companies to diversify their supply chains beyond China due to growing geopolitical and economic tensions. Foxconn has already begun construction on various factory sites in India, but the joint venture with Vedanta would have been one of the largest initiatives.
This development takes place amid delicate negotiations and strained relationships between the United States and China. Both countries are carefully navigating their interdependence while also expressing concerns about each other’s technological advancements and manufacturing dominance.
The U.S. government and major technology firms view these issues as potential threats to national security, leading some corporations to reassess their operations in China to mitigate risks.
Despite the withdrawal from the Vedanta joint venture, Foxconn remains committed to building other factories in India, including facilities in Telangana and Bengaluru.
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