Foxconn dumps $19.5 bln Vedanta chip plan in blow to India

Reuters was first to report that Taiwan’s Foxconn has withdrawn from a $19.5 billion semiconductor joint venture with Indian metals-to-oil conglomerate Vedanta, in a setback to Prime Minister Narendra Modi’s chipmaking plans for India. The world’s largest contract electronics maker signed a pact with Vedanta last year to set up semiconductor and display production plants in Modi’s home state of Gujarat but said Monday it was not going to move forward. Reuters was again first to report further details of Foxconn’s pullout, with a source saying New Delhi had raised several questions on the cost estimates provided to request incentives from India’s government, and concerns about incentive approval delays also contributed to the decision.