- Foxconn plans to establish four to five semiconductor fabrication lines in India.
- The decision follows the company’s withdrawal from a $19.5 billion joint venture with Vedanta.
- Foxconn intends to apply for incentives under India’s semiconductor production plan.
- The company has signed memoranda of understanding with technology partners.
- One production line is likely to be set up in Gujarat, with other locations also being explored.
- Foxconn is committed to India and believes in the country’s potential for semiconductor manufacturing.
Taiwanese major Foxconn is reportedly in discussions with the Indian government regarding its plans to establish four to five semiconductor fabrication lines in India. This move comes after the company recently announced its decision to withdraw from a $19.5 billion semiconductor joint venture with Vedanta, an Indian metals-to-oil conglomerate.
Last year, Foxconn and Vedanta had signed an agreement to set up semiconductor and display production plants in the state of Gujarat, where Prime Minister Narendra Modi hails from.
The Economic Times report indicates that Foxconn has shared details of at least two memoranda of understanding (MoU) it has signed with technology partners. The company has been requested to sign definitive agreements and provide further information on the proposed technology and the parties involved. It is also likely that the tech partner will hold equity in the new partnership. Foxconn is expected to submit its final application and make an official announcement within the next 45-60 days.
While one of the semiconductor fabrication lines is likely to be established in Gujarat, Foxconn is also exploring the possibility of other locations, as mentioned by an insider familiar with the matter.
In light of the split with Vedanta, Foxconn expressed its intention to apply for incentives under India’s semiconductor production plan. The company stated that it is actively reviewing potential partners and remains committed to India’s vision of establishing a robust semiconductor manufacturing ecosystem.
Article Source: Business Today Desk