Foxconn is currently engaged in discussions with TSMC and TMH Group exploring the possibility of establishing a joint venture in India’s semiconductor sector. After their chip partnership with Vedanta Group was terminated Foxconn is keen on manufacturing both advanced and legacy chips within India. This strategic maneuver by Foxconn underscores its dedication to capitalizing on the semiconductor industry in the country.
In a surprising turn of events, Foxconn has entered into discussions with Taiwan’s semiconductor giant Taiwan Semiconductor Manufacturing Co (TSMC) and Japan’s TMH Group to establish a joint venture and technology partnership for semiconductor fabrication units in India. This development comes shortly after Foxconn and the Vedanta Group decided to cancel their chip joint venture.
TSMC renowned as one of the world’s leading chip manufacturers and TMH Group a provider of semiconductor solutions and manufacturing equipment maintenance are the potential partners that Foxconn has been engaged with for a considerable period.
An official announcement revealing the specifics of this partnership is expected to be made in the near future. The collaborative effort aims to produce both advanced and legacy chips within India.
Foxconn’s previous joint venture with Vedanta was terminated due to their inability to secure a technology partner as per the requirements outlined by the Indian government. This condition was imposed because both Foxconn and Vedanta lacked experience in chip manufacturing. However, sources indicate that Foxconn may still proceed with a deal with European company STMicro and US-based GlobalFoundaries for a technological partnership.
In February 2022 Hon Hai Technology Group popularly known as Foxconn and the Vedanta Group led by Anil Agarwal had jointly announced their plans to manufacture chips and display panels in India. This move positioned them as early participants in the India Semiconductor Mission (ISM) a critical component of the government’s strategy to enhance domestic capabilities in the semiconductor industry.
To encourage the establishment of chip manufacturing facilities in the country the Indian government introduced a $10 billion semiconductor incentive program in December 2021.
This initiative provides a 50 percent capital expenditure subsidy to companies setting up chip fabrication units. Furthermore states participating in the ISM have pledged additional subsidies ranging from 15 to 25 percent to attract such projects.
