Taiwanese electronics manufacturing giant Foxconn will make a fresh application to set up a semiconductor manufacturing unit in India, a day after exiting from its chip venture with Vedanta.

Foxconn on Tuesday said it is reviewing the landscape for optimal partners for the project.

“Foxconn is working towards submitting an application related to Modified Programme for Semiconductors and Display Fab Ecosystem. We have been actively reviewing the landscape for optimal partners,” Foxconn said in a statement.

The company confirmed that both the JV partners have mutually agreed to part ways as the project was not moving fast enough.

“This is not a negative. There was recognition from both sides that the project was not moving fast enough, there were challenging gaps we were not able to smoothly overcome, as well as external issues unrelated to the project,” the statement said.

The Taiwan company did not provide further details.

Industry sources said both players were relatively inexperienced in the segment.Foxconn, known for its iPhone production and Vedanta, known for its mining expertise, wanted to diversify its business and paired up in a sector that has future potential but no present ecosystem in the country.

Discussions with global semiconductor major STMicroelectronics for technology transfer reportedly hit a road bump over a sunset clause.

On top of that, the union ministry of electronics and IT in May had announced modifications to the Semicon India programme: incentives up to 50 per cent of the project cost were offered for nodes including mature nodes of more than 40 nanometers.

Earlier, a range of sops were offered for nodes 65 nm to 28 nm or lower in the range of 30 per cent to 50 per cent.

While Foxconn has admitted that building fabs from scratch in a new geography is a challenge, the company in its statement has affirmed its commitment to India.