Foxconn to apply for India chipmaking incentives after $19.5 bln JV pullout

TAIPEI/NEW DELHI, July 11 (Reuters) - Taiwans Foxconn (2317.TW) said on Tuesday it plans to apply for incentives that India is offering under its semiconductor manufacturing policy, a day after the company parted ways with Vedanta on a $19.5 billion chipmaking joint venture.

\“Foxconn is committed to India and sees the country successfully establishing a robust semiconductor manufacturing ecosystem,\” the company said.

\“Foxconn is working toward submitting an application.\”

On Monday, Foxconn withdrew from its semiconductor JV with Indian metals-to-oil conglomerate Vedanta, in a setback to Prime Minister Narendra Modis chipmaking plans for India.

Foxconn said on Tuesday \“there was recognition from both sides that the project was not moving fast enough\” and there were other \“challenging gaps we were not able to smoothly overcome\”, without sharing details.

\“This is not a negative,\” Foxconn said in a statement.

Foxconns Taipei listed shares closed up 0.5% on Tuesday, underperforming the broader market (.TWII) which ended up 1.5%. Vedanta Ltd shares fell as much as 2.6% in Mumbai, before paring some losses.

Reporting by Yimou Lee and Ben Blanchard; Editing by Jacqueline Wong and Sonali Paul

Our Standards: The Thomson Reuters Trust Principles.