AAPL - Apple manufacturing partner Foxconn reportedly pulls out of Indian chip deal

2023-07-10 07:24:13 ET

Apple ( AAPL ) manufacturing partner Foxconn said on Monday that it had ended a joint venture with an Indian metals and mining company that was designed to produce semiconductors.

"Foxconn is working to remove the Foxconn name from what now is a fully-owned entity of Vedanta," the company formally known as Hon Hai Precision ( OTCPK:HNHPF ) said in a statement obtained by Reuters .

Neither Foxconn or Vedanta immediately responded to a request for comment from Seeking Alpha.

The two companies signed a deal in 2022 that would've seen semiconductor and display production plants set up in Gujarat.

Foxconn has expanded its presence in India in recent memory as the electronics manufacturing firm seeks to diversify its global footprint.

In May, the IT minister of the Indian state Telegana said Foxconn was investing $500M in a new manufacturing space.

In March, it was reported that Foxconn was looking at investing $700M in an iPhone plant in Bengaluru, India. That same month, Foxconn and Apple ( AAPL ) reportedly lobbied for more liberal labor laws in the Indian state of Karnataka.

Last year, Foxconn launched its iPhone production facility in the southern state of Tamil Nadu, India.

More on Foxconn

• Foxconn Q2 revenue dips ~14% but sees brighter Q3 on the back of peak season
• Apple manufacturing partner said to invest $246M from Vietnam for factories
• Apple partner says full-year visibility 'limited' amid economic uncertainty

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