Foxconn, a leading electronics manufacturer, is reportedly planning to establish four or five semiconductor facilities in India. This comes after the company recently withdrew from a semiconductor joint venture project with Vedanta. Despite the setback, Foxconn has shared details of agreements it has signed with technology partners with the Ministry of Electronics and Information Technology.
The government has requested Foxconn to sign definitive agreements and provide additional information about the proposed technology, nature of agreements, and the individuals involved. It is expected that Foxconn, with its experience in the field, will complete the final application and make a formal announcement within the next 45-60 days. The company plans to set up one production line in Gujarat and is also exploring other potential locations for its semiconductor facilities.
The decision to establish semiconductor facilities in India comes after Foxconn’s announcement to withdraw from a $19.5 billion joint venture project with Vedanta. The decision was made due to “challenging gaps” that were difficult to overcome, but Foxconn emphasized that the move was not negative.
Under India’s Modified Program for Semiconductors and Display Fab Ecosystem, which offers incentives for chip and display manufacturing projects, Foxconn had been working to apply for incentives. The company is currently in discussions with various domestic and foreign partners for its chip-making facilities in India. The focus will be on using mature semiconductor technology for products like electric vehicles (EVs). However, the specific names of potential partners have not been disclosed.
In the meantime, the government is evaluating a 40nm fab proposal submitted by Vedanta through Vedanta Foxconn Semiconductors Ltd (VFSL). The proposal is backed by a Tech licensing agreement from a global semiconductor major, according to Rajeev Chandrashekar, the Minister of State for IT.
Foxconn’s decision to set up semiconductor facilities in India signifies the country’s growing importance in the global semiconductor industry. The establishment of these facilities will not only contribute to technological advancements but also boost India’s manufacturing capabilities, particularly in the field of semiconductors.
