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A man walks through the barrier of India’s first Apple retail store, which will be launched soon, at Jio World Drive Mall, in Mumbai, India, April 5, 2023.
Francis Mascarenhas | Reuters
driving apple supplier and global manufacturing force Foxconn It pulled out of a $19.5 billion joint venture with an Indian conglomerate that would have brought semiconductors and display manufacturing to the Indian state of Gujarat.
“Foxconn has decided that it will not proceed with the joint venture with Vedanta,” the Taiwanese company said. Reuters in the current situation. The move is a major blow to Indian Prime Minister Narendra Modi’s ambitions to turn the country into a global high-tech manufacturing powerhouse.
US companies, Apple among them, have pushed their suppliers to diversify their supply chains outside of China, as geopolitical and economic tensions mount. Foxconn has groundbreaking several factory sites across India, though the $20 billion joint venture with Vedanta would have been one of the largest.
The breakup comes as leaders and CEOs in the United States and China work through a turbulent and often treacherous path, both balancing the acknowledgment of codependency and harshly berating their counterparts.
The US government and major technology companies are beginning to identify Chinese technological developments and manufacturing dominance as a major threat to national security. Some American companies, long the victims of state-sanctioned Chinese industrial espionage, are re-evaluating Chinese operations as part of so-called “take no risks” efforts.
Foxconn continues to build other plants across India, including one in Telangana and one in Bengaluru.
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