Taiwan's Foxconn 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.

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"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 Modi's 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.

"Foxconn has no intention to do anything but continue to strongly support the government’s 'Make In India' ambitions and establish a diversity of local partnerships that meet the needs of stakeholders," it added.

The company also said that it has been actively reviewing "the landscape for optimal partners" and it is open to welcoming both domestic and international stakeholders.

Foxconn's Taipei-listed shares closed up 0.5 percent on Tuesday, underperforming the broader market which ended up 1.5 percent. Vedanta Ltd shares fell as much as 2.6 percent in Mumbai, before paring some losses.

First Published:Jul 11, 2023 1:34 PM IST