Foxconn said it intends to apply for incentives under India’s semiconductor production plan, a day after the Taiwanese firm split with Vedanta on a $19.5 billion chipmaking joint venture.
Foxconn withdrew from the JV with the Indian metals-to-oil conglomerate on Monday, in a setback to Prime Minister Narendra Modi’s chipmaking plans for India.
The world’s largest contract electronics maker said on Tuesday it was working towards applying under India’s Modified Programme for Semiconductors and Display Fab Ecosystem, a $10 billion plan offering incentives of up to 50% of capital costs for semiconductor and display manufacturing projects.
“We have been actively reviewing the landscape for optimal partners,” it said in a statement. “Foxconn is committed to India and sees the country successfully establishing a robust semiconductor manufacturing ecosystem.”
Although Foxconn will start afresh, the Vedanta breakup is a setback for Modi who has made chipmaking a top priority in pursuit of a “new era” in electronics manufacturing and hailed the JV as an “important step” last year.
Foxconn is in talks with several local and international partners to make semiconductors in India using mature chip manufacturing technology for products including EVs, two people with direct knowledge of the discussions said, requesting anonymity as the plans are confidential.
“The company will continue to be there, just that it will find other partners,” one of the people said. India expects its semiconductor market to be worth $63 billion by 2026, but Modi’s plan has so far floundered.
Although three companies applied for incentives last year -- Vedanta-Foxconn JV, Singapore-based IGSS Ventures and global consortium ISMC, which counts Tower Semiconductor as a tech partner -- no plan has been sealed.
Published in The Express Tribune, July 12th, 2023.
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