Foxconn, the Taiwan-based electronics manufacturing services company, has submitted an application to establish a semiconductor fabrication unit in India, as revealed by Rajeev Chandrasekhar, the Minister of State for Electronics and IT. This move is in line with the “modified scheme for setting up of semiconductor fabs in India,” a government initiative designed to enhance the electronics manufacturing sector, including semiconductors.
Despite a recent exit from a joint venture with the Vedanta Group for a chip plant in Gujarat, where an investment of around Rs 1.5 lakh crore was planned, Foxconn remains committed to India’s semiconductor industry. The government’s strategy involves incentivizing significant investments in electronic goods and appliances, fostering exports to strengthen the country’s position in the global market.
The semiconductor sector in India received a significant boost earlier this year when Micron’s application for a semiconductor unit was approved under the Semicon India program. Construction of the unit is already underway, marking a positive stride in the country’s semiconductor capabilities.
Foxconn’s interest in India aligns with its broader expansion plans in the country, aiming to double its workforce and investment by the next year. As a key supplier to Apple and the world’s largest contract manufacturer of electronics, Foxconn has been strategically diversifying its operations away from China.
V Lee, Foxconn’s representative in India, hinted at the company’s ambitious goals on Indian Prime Minister Narendra Modi’s 73rd birthday, expressing the intent to double employment, foreign direct investment (FDI), and business size in India by next year. While specific details were not provided, Foxconn’s existing iPhone manufacturing facility in Tamil Nadu, employing 40,000 people, showcases the company’s commitment to India’s growing market.
In August, the state of Karnataka announced a $600 million investment by Foxconn for two projects, focusing on manufacturing casing components for iPhones and chip-making equipment. Liu Young-way, Foxconn’s Chairman, emphasized the company’s optimistic outlook on India’s potential during an earnings briefing, indicating that their current investment is just the beginning.
