India's Vedanta slips after Foxconn pulls out of semiconductor JV (updated)

Foxconn Technology

11/07/2023 05:24

(Adds background in paragraphs 2, share movement in paragraph
4)
       BENGALURU, July 11 (Reuters) - India's Vedanta  VDAN.NS 
fell over 2% on Tuesday, a day after Taiwan's Foxconn  2317.TW 
said it withdrew from a $19.5 billion semiconductor joint
venture with the metals-to-oil conglomerate.
    The companies partnered last year to set up semiconductor
and display production plants in Gujarat. Concerns about
incentive approval delays by India's government had contributed
to Foxconn's decision to pull out of the venture, a source
familiar with the matter told Reuters on Monday. 
        S&P Global Ratings said that Vedanta's planned
semiconductor business does not increase immediate liquidity
pressure, adding that it believes there is no immediate sizable
funding commitment for the semiconductor project, pending
government approval. 
  
        Shares of Vedanta fell as much as 2.6% to 275 rupees
apiece, after having already fallen 24.1%, as of last close,
since the partnership was announced in February last year. 
  

 (Reporting by Varun Vyas in Bengaluru; Editing by Dhanya Ann
Thoppil)
 ((varunvyas.hebbalalu@thomsonreuters.com;))