Vedanta's share price took a hit, dropping nearly 3%, as Foxconn, a Taiwanese electronic contract manufacturer, decided to back out from a joint venture aimed at developing semiconductors. This unexpected move sent Vedanta shares tumbling to Rs 275 per share on the NSE, down from the previous day's closing price of Rs 282.25. As the day drew to a close, the stock found its place at Rs 277.75 per share, showing a slight dip of 1.59%.
Foxconn and Vedanta had joined forces with ambitious plans to construct semiconductor and display production plants in Gujarat, involving a substantial investment of around Rs 1.5 lakh crore. Nevertheless, Foxconn dropped a bombshell by declaring their decision not to move forward with the joint venture, expressing their intention to explore other avenues for development. Nevertheless, Foxconn demonstrated its steadfast belief in India's semiconductor industry and its dedication to support government's "Make in India" campaign.
Following the news, Union Minister of Electronics and IT, Ashwini Vaishnaw, took to Twitter to emphasize that both Foxconn and Vedanta remain dedicated to India's semiconductor mission and the Make in India program.
In the past year, Vedanta's stock has demonstrated a positive trajectory, yielding returns of over 20%. This performance outpaced the Nifty 50 index, which also experienced a similar upward trend.