The action follows the company’s announcement that it will leave a $19.5 billion semiconductor joint venture with Indian behemoth Vedanta.
The government has been notified that Taiwanese technology firm Foxconn plans to establish at least four to five semiconductor manufacturing facilities in India, according to individuals with knowledge of the issue.
The action follows the company’s announcement that it will leave a $19.5 billion semiconductor joint venture with Indian behemoth Vedanta. The largest contract electronics manufacturer in the world and Vedanta reached an agreement last year to build factories for semiconductor and display production in Gujarat, the home state of Prime Minister Narendra Modi.
At least two memorandums of understanding (MoU) that Foxconn has signed with technical partners, according to the article, have been disclosed to the Ministry of Electronics and information technology.
According to the above-mentioned Economic Times story, which quoted a senior government official, “We have asked them to sign binding contracts and report back to us with the specifics on the proposed technology, the kind of agreements, the parties involved in these, among others.” The person went on to say that it’s probable that the IT partner will have shares in the new venture.
Since Foxconn is aware of the processes, they ought to be able to submit their final application and make the announcement in the next 45 to 60 days.
Another individual with knowledge of the matter added that while Foxconn may look into other places, at least one of these manufacturing lines is expected to be established in Gujarat.
After parting ways with Vedanta, Foxconn said that it will submit an application for incentives under India’s chip development plan.
It stated on Tuesday that it was attempting to submit an application under India’s $10 billion Modified Programme for Semiconductors and Display Fab Ecosystem, which offers incentives of up to 50% of capital expenses for projects involving the manufacture of semiconductors and displays.
