As per reports on September 10 and Bloomberg, Foxconn Technology Group, after terminating its joint venture with Vedanta, is currently in discussions with STMicroelectronics. Their aim is to jointly apply for the construction of a 40-nanometer semiconductor factory in India.
Foxconn, renowned for its assembly services for Apple products, already has a significant presence in India.
Their existing factories in Karnataka and Tamil Nadu are responsible for manufacturing iPhones and various Apple accessories. Despite having no prior experience in semiconductor manufacturing plants, Foxconn has exhibited keen interest in establishing such a facility in India.
Last year, the company entered into a chip facility cooperation agreement worth $19.5 billion (INR 1619 Billion or 143.325 Billion Yuan) with Indian mining giant Vedanta. However, in July of this year, Foxconn withdrew from the joint venture and declared its intention to construct an independent chip factory in India.
Liu Yangwei, Chairman and CEO of Foxconn, stated on Wednesday that India is poised to become the world’s new manufacturing hub. He also expressed the belief that the supplier ecosystem in India may develop at a faster pace than that of China.
India is actively striving to enhance its chip production capabilities, aiming to reduce dependence on costly imports and minimize reliance on China. Indian Prime Minister Narendra Modi has committed to allocating $10 billion to attract chip manufacturers.
Additionally, the government has pledged to cover half the cost of establishing semiconductor factories. These initiatives have prompted US memory chip company Micron Technology to announce the establishment of a $2.75 billion assembly and manufacturing facility in Gujarat, Prime Minister Modi’s home state, specifically for testing purposes.
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