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On Monday, Indian billionaire Anil Agarwal suffered a big defeat when Taiwanese business Foxconn backed out of a USD 19.5 billion dollar joint venture with Vedanta in a major semiconductor chip deal planned to turn a new leaf in India.
While neither Foxconn nor Vedanta has any experience with semiconductor chip manufacturing, the Taiwanese company is a global electronics player. The chips were intended to be obtained from a technical partner.
Hon Hai Technology Group (Foxconn) said in a statement after pulling out of the Rs 1.5 lakh crore agreement, delivering a huge blow for Vedanta founder Anil Agarwal, that “Foxconn has no connection to the entity and efforts to keep its original name will cause confusion for future stakeholders.”
Previously, major electronics manufacturer Foxconn and Anil Agarwal’s Vedanta announced a contract to increase semiconductor production in India and set up a plant in Gujarat for the purpose, with an investment of approximately USD 19.5 billion, or Rs 1.6 lakh crore.
“In order to explore more diverse development opportunities, Foxconn has determined it will not move forward on the joint venture with Vedanta,” Foxconn said in an official statement on Monday.
While the two businesses’ joint multibillion-dollar collaboration comes to an end, Vedanta has stated that it remains dedicated to the semiconductor project in India and has additional partners lined up to take the deal further.
Anil Agarwal Next Move
Vedanta is a worldwide mining firm led by billionaire Anil Agarwal that specialises in mining iron, gold, and aluminium ores in Goa, Karnataka, Rajasthan, and Odisha. With a market capitalization of Rs 1.05 lakh crore, Vedanta alone has a tremendous net worth.
Furthermore, Anil Agarwal is a big businessman in India and is regarded as the leader of the country’s leading mining company. Agarwal and his family have a combined net worth of USD 2.01 billion, which equates to around Rs 16,500 crore.