Foxconn withdraws from $19.5 billion Vedanta chip plan in India

[Maarkhoor]

Foxconn withdraws from $19.5 billion Vedanta chip plan in India - Times of India

India Business News: Foxconn on Monday said it has decided to pull out of semiconductor joint venture with Indian conglomerate Vedanta, according to a statement. Foxconn s

timesofindia.indiatimes.com

@Areesh @Hero786

 

[MH.Yang]

The business environment in India is very poor. In fact only those with connections to Indian officials get a fair investment climate, not even ordinary Indians, let alone foreign investors.

 

[ProudThamizhan]

Foxconn is unable to deal with the labor laws and practices of India, Indian labor, politics and local geo issues are quite complex being an undisciplined democracy. It is understandable that they prefer to leave it to those with better 'local' expertise. A few months ago Tata abruptly tookover iPhone mfr from Foxconn I think, probably for similar reasons.

 

[indushek]

The business environment in India is very poor. In fact only those with connections to Indian officials get a fair investment climate, not even ordinary Indians, let alone foreign investors.

And you drew these conclusions, based on what?

Neither Vedanta nor Foxconn outlined why they are separating from a deal, which is between two private entities.

 

[ProudThamizhan]

The business environment in India is very poor. In fact only those with connections to Indian officials get a fair investment climate, not even ordinary Indians, let alone foreign investors.

this is actually more true than not.
But that is true everywhere, whether US or China or everywhere in between. Ask Jack Ma

 

[Vikramaditya-I]

Foxconn is unable to deal with the labor laws and practices of India, Indian labor, politics and local geo issues are quite complex being an undisciplined democracy. It is understandable that they prefer to leave it to those with better 'local' expertise. A few months ago Tata abruptly tookover iPhone mfr from Foxconn I think, probably for similar reasons.

Actually, it was Vedanta's issue, they are not in chip making. They are basically a mining company that is trying to diversify. Foxconn can find better partners elsewhere.

 

[Abdul Rehman Majeed]

The business environment in India is very poor. In fact only those with connections to Indian officials get a fair investment climate, not even ordinary Indians, let alone foreign investors.

Indians have loud mouths.

They always make big claims but the actual results are always miserable.

 

[indushek]

Foxconn is unable to deal with the labor laws and practices of India, Indian labor, politics and local geo issues are quite complex being an undisciplined democracy. It is understandable that they prefer to leave it to those with better 'local' expertise. A few months ago Tata abruptly tookover iPhone mfr from Foxconn I think, probably for similar reasons.

One can understand the complexities of Indian local laws, which vary from state to state. However we can't jump to conclusions, based on one article that just states two private entities forgave the deal they struck.

Interesting part of the article, but we can't even be sure if this is true

Meanwhile, sources told Reuters that the Taiwan-based company pulled out of the joint venture after the government raised questions over its application for an incentive scheme for chip production.

Foxconn and Vedanta did not respond immediately to requests for comment.

 

[ProudThamizhan]

One can understand the complexities of Indian local laws, which vary from state to state. However we can't jump to conclusions, based on one article that just states two private entities forgave the deal they struck.

Interesting part of the article, but we can't even be sure if this is true

Meanwhile, sources told Reuters that the Taiwan-based company pulled out of the joint venture after the government raised questions over its application for an incentive scheme for chip production.

Foxconn and Vedanta did not respond immediately to requests for comment.

possible; I was guessing given the background of prior events

 

[CallSignMaverick]

They've withdrawn from the JV, they anyways were not a serious contender.

 

[indushek]

possible; I was guessing given the background of prior events

I don't disagree with your earlier assessment though, our leaders at times have proven to be shortsighted in wake of local politics. Mamata comes to mind instantly of course, but then there are many other examples.

However chip manufacturing, this is entirely different thing. The investments needed are enormous, and the results to show up will take decades.

 

[PakFactor]

Before everyone jumps up and down, it's just between these two parties; however, Foxconn is still building three facilities in India on its own. This is a case of a partnership failing in a typical business environment.

 

[Maarkhoor]

Before everyone jumps up and down, it's just between these two parties; however, Foxconn is still building three facilities in India on its own. This is a case of a partnership failing in a typical business environment.

As per reports political parties asking huge sum of money in the name of donation from these foreign companies.

 

[Kaniska]

This is the situation where people start cheering up before even a brick is placed for any industry. Nothing new or unusual wrt to Indian business ecosystem.

 

[PakFactor]

As per reports political parties asking huge sum of money in the name of donation from these foreign companies.

No, according to Reuters:

A source familiar with the matter said concerns about incentive approval delays by India's government had contributed to Foxconn's decision to pull out of the venture. New Delhi had also raised several questions on the cost estimates provided to request incentives from the government, the source added.

STMicroelectronics, a European Semiconductor company, was also involved in this deal. However, the Indian government wanted them to have more skin in the game, and these talks remained limbo.

But regardless, Foxconn will continue its projects independently in India.