Nearly 3% decline in early trading for Vedanta shares

After Taiwan’s Foxconn withdrew from a USD 19.5 billion semiconductor joint venture with mining billionaire Anil Agarwal’s company, Vedanta shares plummeted by close to 3% on Tuesday.

On the BSE, the shares fell 2.60 percent to Rs 274.90.

It decreased 2.56 percent to Rs 275 at the NSE.

 

Foxconn withdrew from a USD 19.5 billion semiconductor joint venture with Vedanta Ltd because the firm was unable to find a technology partner to produce the chips used in everything from vehicles and refrigerators to cell phones and other consumer electronics.

 

The biggest producer of contract electronics worldwide, Foxconn, said in a statement that it “has decided it will not proceed on the joint venture with Vedanta.”

 

In response, Agarwal’s metals-to-oil conglomerate said that it was “fully committed to its semiconductor fab project and we have lined up other partners to set up India’s first foundry”.

 

However, it omitted information on the new partners.

 

Foxconn and Vedanta agreed to establish semiconductor and display manufacturing facilities in Gujarat last year. Foxconn is well known for assembling iPhones and other Apple goods.

 

STMicroelectronics, a European chipmaker, was being enlisted as a technological partner for the project, but negotiations stalled.