Apple supplier Foxconn has pulled out of a $19.5bn (£15.2bn) deal with Indian mining giant Vedanta to build a chip making plant in the country.
The move comes less than a year after the companies announced plans to set up the facility in Prime Minister Narendra Modi's home state of Gujarat. Some analysts say it marks a setback to the nation's technology industry goals. However, a government minister says it will have no impact on the country's chip making ambitions. "There was recognition from both sides that the project was not moving fast enough," Taiwan-headquartered Foxconn
said in a statement. "There were challenging gaps we were not able to smoothly overcome, as well as external issues unrelated to the project," the firm added.
Earlier on Tuesday, Foxconn told the BBC that the decision was made in "mutual agreement" with Vedanta, which has assumed full ownership of the venture.
