The Indian Government and Foxconn had concerns about the financial situation of Vedantawhich led to the Taiwanese company splitting off from Vedanta and setting up a chip-making joint venture, sources familiar with the information told Reuters.
The London-based parent company of the Indian conglomerate Vedanta, Vedanta Resources, is suffering from a mounting debt mountain.
In a statement to Reuters, Vedanta said its Indian subsidiary Vedanta was in a “comfortable financial position” and there was “no basis” for such speculation.
India’s IT ministry did not respond to requests for comment on Tuesday.
Some rating agencies downgraded Vedanta Resources this year over concerns about the risks of a debt default.
There have been no defaults by the group, said Vedanta chairman Anil Agarwal.
Meanwhile Foxconn called On Tuesday, the company plans to apply for incentives offered by India under its semiconductor manufacturing policy, a day after the company divested itself of Vedanta in a $19.5 billion (about 1,60,600 crore) chipmaking joint venture has.
“Foxconn is committed to India and sees the country successfully building a robust semiconductor manufacturing ecosystem,” the company said.
“Foxconn is working on submitting an application.”
On Monday, Foxconn pulled out of its semiconductor JV with Indian metals-to-oil conglomerate Vedanta, in a blow to Prime Minister Narendra Modi’s chipmaking plans for India.
Foxconn said on Tuesday, “Both sides have recognized that the project is not moving fast enough,” and that there are other “challenging gaps that we have not been able to fill smoothly,” without sharing details.
“This is not a negative,” Foxconn said in a statement.
© Thomson Reuters 2023
(This story was not edited by NDTV staff and is auto-generated from a syndicated feed.)
