Earlier this week, Foxconn terminated its joint venture with Anil Agarwal-controlled Vedanta Group and expressed its intention to apply separately for incentives under the government’s semiconductor production plan.
Vedanta Foxconn JV now under the listed entity. pic.twitter.com/s0FEAxuKGl
— Saket Reddy (@saketreddy) July 7, 2023
Following the closure of the joint venture with Vedanta, Foxconn is reportedly in discussions with TSMC, a Taiwan-based semiconductor manufacturing company, and TMH Group from Japan for partnership deals to establish semiconductor fabrication units in India. Both Foxconn and TSMC are headquartered in Taiwan.
According to the source, details of the partnership for manufacturing advanced and legacy node chips are expected to be finalized soon.
TSMC is one of the world’s largest chip foundries, while TMH Group offers semiconductor-related solutions and operates and maintains manufacturing equipment.
TSMC, which produces over 50% of the world’s chips, recorded revenue growth of 33.5% in 2022, reaching $75.88 billion. The company also shipped 15.3 million 12-inch equivalent wafers last year, compared to 14.2 million in 2021. Its chips are used by almost all top semiconductor companies, including AMD, Apple, ARM, Broadcom, Marvel, MediaTek, and NVIDIA.
In December 2021, as part of the government’s incentive scheme, the Vedanta-Foxconn consortium was one of the five applicants seeking a $10 billion package to promote domestic semiconductor manufacturing.
The central government is offering a 50% subsidy on capital expenditure to companies establishing chip manufacturing units in the country.
In addition, the Indian Semiconductor Mission (ISM) had prepared a 15-25% additional subsidy to attract such projects, covering approximately 75% of the total project cost.
Previously, it was reported that Foxconn was in advanced discussions with European company STMicroelectronics and America’s GlobalFoundries for technological partnerships with the Vedanta-Foxconn joint venture.
The central government had told the Vedanta-Foxconn consortium that they needed a technological partner due to a lack of knowledge in semiconductor manufacturing. After that, Foxconn discussed deals with STMicro and GlobalFoundries for its Indian plans. The report suggests that Foxconn could include STMicro or GlobalFoundries for its Indian ventures.
On Wednesday, Foxconn stated that it is committed to building India’s semiconductor ecosystem and will begin afresh with new partners.
After pulling out from jv with Vedanta, Foxconn to apply for 4 to 5 semiconductor fabrication lines in India, under incentives plan.
Massive jolt for the ppl rejoicing earlier development and
criticising Micron plan just as "PR". pic.twitter.com/MbnV9PzVUh— The Hawk Eye (@thehawkeyex) July 12, 2023
In a statement, Foxconn mentioned that it had initiated discussions with Indian and global companies for potential partnerships and will re-submit its application to the government under the revised program for semiconductor and display fab ecosystem policy.
“Creating fabs in a new geography is challenging, but Foxconn is committed to investing in India. We have been working on such challenges since the 1980s. We will continue to support the government’s ‘Make in India’ ambitions and establish various types of local partnerships to meet stakeholders’ requirements.”
Foxconn operates mobile phone assembly units in southern India, producing millions of iPhones and Xiaomi smartphones. It also manufactures other electronic products, including EVs.
“Foxconn first entered India in 2006 and wants to further expand with India’s growing semiconductor industry. The company stated that it has communication channels with government stakeholders and is clear about its continuous commitment to India.”
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