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Foxconn, which did not say why it had taken the decision, and
Vedanta signed a pact last year to set up semiconductor and
display production plants in Modi's home state of Gujarat.
"Foxconn has determined it will not move forward on the joint
venture with Vedanta. Foxconn is working to remove the Foxconn
name from what now is a fully-owned entity of Vedanta," it said
in a statement.
Modi has made chipmaking a top priority for India's economic
strategy in pursuit of a "new era" in electronics manufacturing"
and Foxconn's move represents a blow to his ambitions of luring
foreign investors to make chips locally for the first time.
Vedanta did not immediately reply to a request for comment.
Reuters has previously reported that Modi's plan was in trouble,
with the Vedanta-Foxconn project proceeding slowly as their
talks to involve European chipmaker STMicroelectronics as a
partner were deadlocked.
Vedanta-Foxconn had got STMicro on board for licensing
technology, but India's government had made clear it wanted the
European company to have more "skin in the game", such as a
stake in the partnership.
STMicro was not keen on that and the talks remained in limbo, a
source had previously said.
(Reporting by Munsif Vengattil in Bengaluru; Editing by Louise
Heavens, Jason Neely and Alexander Smith)
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