Vedanta's share price is likely to be volatile on Tuesday morning after Foxconn announced that it is pulling out of a $19.5 billion joint venture to set up a semiconductor fab in India.
A Vedanta spokesperson said that the company is still committed to its semiconductor project and has lined up other partners. However, the news of Foxconn's withdrawal is likely to weigh on Vedanta's share price in the short term.
Foxconn said that it is working to remove its name from the joint venture, which is now fully owned by Vedanta. The company did not give a reason for its decision to withdraw from the project.
The decision by Foxconn is a setback for India's ambitions to become a major player in the global semiconductor market. However, Vedanta has said that it is still committed to the project and is confident that it will be able to find other partners.
The volatility in Vedanta's share price is likely to continue in the near term as investors assess the implications of Foxconn's withdrawal.
- The joint venture between Vedanta and Foxconn was announced in 2022.
- The project was expected to create 30,000 jobs and generate $100 billion in revenue for India.
- The withdrawal of Foxconn is a blow to India's plans to become a major player in the global semiconductor market.
- Vedanta is still committed to the project and has said that it is confident that it will be able to find other partners.