Vedanta Limited share price declined 2 percent in early trade on July 11 after Taiwan's Foxconn said on Monday that it has withdrawn from a $19.5 billion semiconductor joint venture with the metals-to-oil conglomerate.
At 9:53 am, Vedanta was trading at Rs 278 per share, down 1.45 percent from the previous day's close on the National Stock Exchange. The stock has given a negative return of 13 percent in the last six months.
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The exact reason for this decision was not disclosed by the Taiwanese major. In a statement, Foxconn mentioned that they are currently working on disassociating the Foxconn name from the entity, which now solely belongs to Vedanta. Foxconn and Vedanta had previously entered into an agreement last year to establish semiconductor and display manufacturing facilities in Gujarat.
Following the company's withdrawal, Vedanta has said that it has lined up other potential partners to set up manufacturing units.
Foxconn has said it expresses confidence in India's semiconductor development and emphasizes its commitment to supporting the government's "Make In India" initiative.
"We will continue to grow our Semiconductor team, and we have the license for production-grade technology for 40 nm from a prominent Integrated Device Manufacturer (IDM). We will shortly acquire a license for production-grade 28 nm as well", a company official told Moneycontrol.
The development came just after the Anil Agarwal-led company received approval from its board of directors to acquire a 100 percent stake in Vedanta Foxconn Semiconductors (VFSPL) and Vedanta Displays (VDL) through share transfer at face value.
The two are wholly owned subsidiaries of Twin Star Technologies
Limited (TSTL), which is owned by Volcan Investments Limited, the ultimate holding company of Vedanta Limited.
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