Home Blog Foxconn refused  to deal with Vedanta of semiconductor chip

Foxconn refused  to deal with Vedanta of semiconductor chip

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Foxconn, Vedanta, Mining, Semiconductor, India, Taiwan

Mining is the biggest industry in any country. Mining provides essential materials like metal, minerals, and oil. This material is the raw material for the production sector. Basic sectors like construction, and infrastructure need materials like metals. All machines are made of metal. 

Vedanta

Vedanta limited is a very renowned company in mining.  It proposed a deal with a Taiwan-based electronic product company Foxconn to get a semiconductor. But Share price of Vedanta decreased from 4%. So Foxconn broke the deal. This is not a sure reason but according to sources this can be a major reason.  

Foxconn, Vedanta, Mining, Semiconductor, India, Taiwan

Vedanta is an Indian mining company. It is situated in Mumbai. Its old name is Sterlite Industry. Vedanta was founded in 1980 by D.P. Aggarwal. Later, Vedanta started to buy concessions in different states. D. P. Aggarwal’s two joined this family business. Navin Agarwal and Sunil Agarwal, are currently involved in this business. 

Holding Company

Vedanta established a holding company situated in Bahamas named Nasaau. They established this company for mining. Originally, D.P. Aggarwal founded a small aluminium conductor business in Patna.  But his son Anil agarwal made Vedanta bigger. Anil Aggarwal expands this business by going to Mumbai. 

Joint Venture

Vedanta plans to build a joint venture of 19.5 billion dollar with Taiwan based electronic company Foxconn. This can be a major decision for the Vedanta. This deal will be a major part of the Make in India project. This will decide the future of technology in India. Technological goods need semiconductors. And this deal will provide semiconductors in India easily. Easily availability of semiconductors can increase technological development. 

Reason Behind breaking of Joint Venture

The share price of Vedanta went down on 11 July 2023 at 10:15. The stock opened at Rs. 275. But at the previous close, the price of Vedanta shares was Rs. 282.25. The trading decreased from 1.26 percent from the original value. Stock sell at Rs.278.70. 

Foxconn

Foxconn, Taiwan based electronic company, wants to collaborate with India’s mining company Vedanta. They will establish their venture in Gujarat. Vedanta will be a major shareholder in this venture. This condition is on the MOU. That MOU is signed by both companies. 

Foxconn, Vedanta, Mining, Semiconductor, India, Taiwan

Foxconn statement

Foxconn stated that they want to get more diverse options for their venture. That is why they pull out their partnership from this venture. This statement was given on 10 July 2023. 

Minister for Railways, Communications, Electronics & Information Technology, Ashwini Vaishnaw

Foxconn, Vedanta, Mining, Semiconductor, India, Taiwan

This will be a  major breakdown for the India’s Make in India program. Minister for Railways, Communications, Electronics & Information Technology, Ashwini Vaishnaw told on twitter about this. This venture will be a milestone for India. Both parties are ready to make a commitment on helping India’s Make in India program. 

Minister of State for Entrepreneurship, Skill Development, Electronics & Technology, Rajeev Chandrasekhar

Some politicians have different opinions about this deal. Minister of State for Entrepreneurship, Skill Development, Electronics & Technology, Rajeev Chandrasekhar presented his opinion on twitter about this deal. The breakage of this deal doesn’t affect anything. India will continue its mission. India will not stop by some small obstacles. Both parties, Foxconn and Vedanta have their own opinions. They can choose their own strategy.  

Foxconn, Vedanta, Mining, Semiconductor, India, Taiwan

Vedanta statement

Vedanta also stated that the pull out of Foxconn from this Joint Venture will not change anything. Vedanta has to just adjust their way. Vedanta will create a semiconductor fab project. They will find another company for their semiconductor requirement.

 Vedanta started their production team for this future project. Vedanta gets licensed for 40 nm production grade technology. They will get this technology from an Integrated Device Manufacturer (IDM). Vedanta will shortly get 28mn technology. 

Vedanta will collaborate in future with Twin star company. Twin star technology is fully owned by Volcan Investment. Volcan Investment is the subsidiary company of Vedanta. 

 This time Vedanta will get 100 percent stockholder. Twin Star will provide semiconductors and display units to Vedanta. 

Products of Vedanta 

Copper:

Vedanta has the biggest copper smelter. 50 percent profit is derived from this smelter in Tutuicorin. Vedanta stated that their plant and machinery does not pump any waste material to the sea due to their environment policy.

Zinc-Lead-Silver: 

Indian business regarding Zinc is handled by Hindustan Zinc Limited(HZL). HZL is the largest producer of Zinc and Lead by volume. HZL is the subsidiary company of Vedanta. 

Oil & Gas:

Cairn India is the biggest producer of crude oil in India in the private sector.Cairn India is now merged with Vedanta mining company. The headquarters of Cairn India is situated in Gurgaon, Haryana, India.  

Iron Ore:

Sesa Sterlite(later renamed Vedanta) is the biggest exporter of iron ore in India.

Sesa satellite deposits its iron ore in  Liberia. Liberia is a country off the West African coast. Iron mining is done in Karnataka and Goa by Sesa Sterlite

Aluminium:

BALCO is the aluminium producer for Vedanta. At first, BALCO was owned by the Indian Govt. But after 2001, Vedanta purchased this company. BALCO possesses the capacity of smelter 345 ktpa(Kilo-Tonnes Per Annum). BALCO can produce products like ingots, wire-rods, billets, busbars and rolled products. BALCO’s plant and machinery is situated in Chhattisgarh. Vedanta holds its 51 percent stake. 

Power:

In the power sector, Vedanta is running so far from its competitors. No one is able to reach the level of Vedanta. Vedanta has a capacity of 3900 MW. 

Vedanta limited is the future of India and its own Make in India program. 

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