In the past two years, India has good business trends. Along with international customers to adjust the supply chain strategy of the east wind, to undertake a lot of investment from China to transfer out.

However, in the past two years in India, there are many companies in trouble. And things are quite big.

For example, one of Apple's main suppliers - Wistron (Wistron), plans to withdraw completely from the Indian market, and proposed to dissolve its business in India within a year.

Xiaomi, for example, has had $4.8 billion in funds frozen in India.

There was a public outcry.

On July 10, India once again burst into a big event.

Apple's main supplier, China's Taiwan-based Foxconn released a statement on July 10 saying it had withdrawn from a $19.5 billion (about 141 billion yuan) semiconductor joint venture with India's Vedanta Group (Vedanta).

Foxconn said the two sides worked together for more than a year to realize the establishment of chip factories in India, but now unanimously decided to terminate the program. Foxconn will remove its name from the joint venture, which is now fully owned by Vedanta.

Foxconn's parent company Hon Hai said in a statement on Monday evening:

Over the past year or so, Hon Hai Technology Group and Vedanta have worked hand-in-hand to bring their shared semiconductor vision to fruition in India, which has been a fruitful and rewarding experience of cooperation, and has laid a solid foundation for their respective next steps. In order to explore more diversified development opportunities, according to the agreement between the two sides, Hon Hai subsequent will no longer be involved in the operation of the two sides of the joint venture.

It is reported that in February last year, Foxconn first announced its cooperation with Vedanta to build a factory. Foxconn said at the time, the two companies have agreed to set up a chip joint venture, Foxconn will invest 118.7 million U.S. dollars, holding a 40% stake in the joint venture.

The $19.5 billion project was originally one of Foxconn's biggest overseas projects. Foxconn is known for assembling iPhones and other Apple products, and in recent years, the company has been expanding into chips to diversify its business.

The sudden news came as a surprise to everyone.

And in the statement, Foxconn did not mention the reason for withdrawing from the joint venture factory.

It is understood that the progress of the chip project will depend on subsidies from the central and state governments of India, as well as loans from banks.

According to a Bloomberg report, Hon Hai and Vendanta's partnership to build a 28-nanometer wafer fab has not been up to the Indian government's standards, and therefore could not access up to billions of dollars in subsidies, which is a major setback for the two sides intended to smash $19.5 billion to build semiconductor factories in India, according to a report by Bloomberg.

A person familiar with the matter said, out of the Indian government delayed approval of incentives for the concern, Foxconn decided to withdraw from the joint venture.

Currently, India's Prime Minister Narendra Modi has made chip manufacturing one of the top priorities of India's economic strategy in pursuit of a "new era" of electronics manufacturing, but Foxconn's move is a blow to his ambition to attract foreign investors to manufacture chips locally in India.

Neil Shah, vice president of research at Counterpoint, also said, "The failure of this deal is definitely a setback for 'Make in India'." It also does not bode well for Vedanta and leaves other companies surprised and skeptical, he added.