Vedanta Shares Fall 3% After Foxconn Withdraws From Semiconductor Joint Venture

Shares of Vedanta on Tuesday fell by nearly 3 per cent after Taiwan's Foxconn withdrew from a USD 19.5 billion semiconductor joint venture with mining baron Anil Agarwal's firm.

The stock declined 2.60 per cent to Rs 274.90 on the BSE and on the NSE, it fell by 2.56 per cent to Rs 275. The shares however saw some recovery from the days low with the shares trading close to Rs 277.60 at 12:58 pm IST.

Foxconn has withdrawn from a USD 19.5 billion semiconductor joint venture with Vedanta Ltd as the venture struggled to get a technology partner to make chips that are used in mobile phones to refrigerators and cars.

In a statement, Foxconn, the world's largest contract electronics maker, said it "has determined it will not move forward on the joint venture with Vedanta.

Agarwal's metals-to-oil conglomerate responded saying it was "fully committed to its semiconductor fab project and we have lined up other partners to set up India's first foundry".

It however did not give details of the new partners.

Foxconn, best known for assembling iPhones and other Apple products, and Vedanta last year signed a pact to set up semiconductor and display production plants in Gujarat.

European chipmaker STMicroelectronics was being roped in as a technology partner for the venture but talks were deadlocked.

With inputs from Agencies