Foxconn is pulling out of a joint venture with Indian company Vedanta to establish a new semiconductor plant in India.
India has been working to establish itself as a rival and alternative to China in the semiconductor and high-tech manufacturing market. Prime Minister Narendra Modi has made attracting tech investments in the company one of his prime endeavors.
According to Reuters, those plans have taken a hit, with Foxconn abandoning its plans to establish a new semiconductor factory with Vedanta.
“This deal falling through is definitely a setback for the ‘Make in India’ push,” Neil Shah, Vice President of research at Counterpoint, told Reuters, saying Foxconn’s withdrawal looks bad on Vendanta and “raises eyebrows and doubts for other companies.”