New Delhi:- India's Gujarat state is in talks with Foxconn over a semiconductor factory, a senior government official told Reuters days after the Taiwanese giant canceled a planned joint venture with Indian firm Vedanta.

"We are in contact with several potential investors, including Foxconn...Gujarat is in a unique position to attract top chip makers," said Vijay Nera, head of the Gujarat State Department of Science and Technology. said.

Foxconn pulled out of a planned Vedanta project in Prime Minister Narendra Modi's home state of Gujarat this week, citing slow progress and other issues.

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The dissolution of the joint venture was a setback to Modi's vision of establishing India as a semiconductor manufacturing center. But Foxconn has since said it has applied for domestic chip subsidies and is looking for new partners. 

Foxconn did not respond to a request for comment. Reuters first reported the talks with Gujarat. Modi wants to make chip manufacturing a top priority to usher in a "new era" of electronics manufacturing, but his plans have so far failed.

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Last year, three companies — the Vedanta-Foxconn joint venture, Singapore-based IGSS Ventures, and ISMC, a global consortium that counts Tower Semiconductor as a technology partner — competed for incentives, but no deal has yet been signed.

Foxconn explained the split of Vedanta on Tuesday, stating that "both sides recognize that progress on the project has not gone far enough", and that there are other "challenges that have not been smoothly filled". “There is a certain gap,” but did not provide further details. 

V. Lee, Head of India at Foxconn, wrote on LinkedIn that "Sometimes you can fly higher when you're alone."

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The talks with Gujarat come weeks after Micron Technology announced it would invest up to $825 million (around Rs 6.8 billion) in its semiconductor testing and packaging facility in the state. 

The Government of Gujarat is now in talks with the tech giant Foxconn that yesterday backed the offer that they made. Gujarat is looking in to bring semiconductors companies to India.