Modi wants India to become a semiconductor making hub
Foxconn pulls out of a key project planned with Vedanta
Foxconn says mutually reached decision with Vedanta
Decision seen as a setback to PM Modi39;s ambitions

TAIPEIBENGALURU, Reuters Taiwan39;s Foxconn has withdrawn from a 19.5 billion semiconductor joint venture with Indian metalstooil conglomerate Vedanta, it said on Monday, in a setback to Prime Minister Narendra Modi39;s chipmaking plans for India.

The world39;s largest contract electronics maker signed a pact with Vedanta last year to set up semiconductor and display production plants in Modi39;s home state of Gujarat.

Foxconn has determined it will not move forward on the joint venture with Vedanta, a Foxconn statement said without elaborating on the reasons.

The company said it had worked with Vedanta for more than a year to bring a great semiconductor idea to reality, but they had mutually decided to end the joint venture and it will remove its name from an entity that is now fully owned by Vedanta.

Vedanta said it is fully committed to its semiconductor project and had lined up other partners to set up Indias first foundry. Vedanta has redoubled its efforts to fulfil Modi39;s vision, it added in a statement.

A source familiar with the matter said concerns about incentive approval delays by India39;s government had contributed to Foxconn39;s decision to pull out of the venture. New Delhi had also raised several questions on the cost estimates…