[ad_1]
Anil Agarwal, a big businessman in the mining and metals sector, may get a big blow and his dream of making semiconductors may be shattered. There are reports that Foxconn, a Taiwanese company engaged in contract manufacturing of semiconductor and other electronic products, is now looking for a new partner for the chip ie semiconductor plant that is going to be set up in India.
Foxconn started looking for partner
According to a news from ET, Foxconn has started contacting other big Indian business houses for this. Foxconn is looking for a new partner for its ambitious semiconductor plant in India. For this, Foxconn had formed a joint venture with Anil Agarwal’s company Vedanta, but now it seems that JV may go into trouble.
Proposal to set up a plant in Gujarat
Earlier there were reports that Vedanta and Foxconn would jointly set up a semiconductor plant in India. Both the companies had also officially told about this. The proposed semiconductor plant was to be set up at Dholera in Gujarat. However, now there are reports that some differences have emerged between the two partners.
Government advised Foxconn
In the news of ET, a senior government official has been quoted as saying that there are some differences between the two sides i.e. Foxconn and Vedanta. He said that the government is in touch with both the parties, but Foxconn has been advised to find a new partner. The official says that the government has concerns about the financial stability of Vedanta.
Vedanta is stuck in debt crisis
Actually Vedanta is facing serious financial crisis these days. There is a huge debt burden on the company, to repay which money is being collected from all possible sources. The company recently raised $450 million in funding by pledging shares with two rival companies. This shows how the need of money has arisen in front of Vedanta and it is also facing problems in raising funds.
Vedanta’s claim on partnership
However, Vedanta still maintains that there is no threat to its partnership with Foxconn. A Vedanta spokesperson said that his company is in a strong position to repay all the liabilities. The spokesperson also claimed that the partnership between Vedanta and Foxconn is intact. Its work is progressing at its own pace.
read this also: Small size but strong returns, shares of these 12 companies jumped up to 200% in 6 months
[ad_2]
Source link