Anil Agarwal’s Indian chip dream remains unfinished as Foxconn pulled out of the Rs 1.5 lakh crore deal with his billion-dollar company Vedanta.
Indian billionaire Anil Agarwal faced a major setback on Monday as Taiwanese company Foxconn ended up withdrawing the USD 19.5 billion dollar joint venture with Vedanta, in a major semiconductor chip deal set to turn a new leaf in India.
While it must be noted that neither Foxconn nor Vedanta has any semiconductor chip-making experience, the Taiwan company is a major electronics player across the world. The companies were expected to source the chips from a technology partner.
Pulling out of the Rs 1.5 lakh crore deal and causing a major setback for Vedanta founder Anil Agarwal, Hon Hai Technology Group (Foxconn) said, “Foxconn has no connection to the entity and efforts to keep its original name will cause confusion for future stakeholders.”
Earlier, major electronics company Foxconn and Anil Agarwal’s Vedanta had inked a deal to boost the production of semiconductors in India and set up a plant in Gujarat for the same, the investment for which was about USD 19.5 billion, which comes out to Rs 1.6 lakh crore.
In an official statement on Monday, Foxconn said, “In order to explore more diverse development opportunities, according to a mutual agreement, Foxconn has determined it will not move forward on the joint venture with Vedanta."
While the joint multi-billion dollar venture between the two companies comes to an end, Vedanta has affirmed that it is continually committed to the semiconductor project in India, and has other partners lined up to take the deal forward.
Vedants, headed by billionaire Anil Agarwal, is a multinational mining company that specializes in mining iron, gold, and aluminum ores in Goa, Karnataka, Rajasthan, and Odisha. Vedanta alone has a massive net worth, with a market cap of Rs 1.05 lakh crore.
Further, Anil Agarwal is a major businessman in India and is considered to head of the leading mining business in the country. Agarwal and his family have a total net worth of USD 2.01 billion, which comes out to around Rs 16,500 crore.
READ | Foxconn withdraws from Rs 1.5 lakh crore JV with Vedanta semiconductor project in India
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 "Big setback for billionaire Anil Agarwal: Vedanta’s Rs 1.6 lakh crore deal with Foxconn withdrawn; what went wrong")
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