New Delhi, 12th July 2023: Taiwanese conglomerate Foxconn has informed the government that it wishes to create at least four to five semiconductor fabrication lines in India.
The company announced its decision to exit a $19.5 billion semiconductor joint venture with Indian metals-to-oil behemoth Vedanta. Last year, the world’s largest contract electronics manufacturer reached an agreement with Vedanta to establish semiconductor and display manufacturing factories in Prime Minister Narendra Modi’s home state of Gujarat.
According to sources, Foxconn has alerted the ministry of electronics and information technology of at least two memorandums of understanding (MoU) it has signed with technical partners.
The Economic Times quoted a government official stating, “We have asked them to sign definitive agreements and come back to us with the details on the proposed technology, the nature of agreements, the people involved in these, among others.”
The official added, “Since Foxconn is aware of the procedures, they should be able to submit their final application and make the announcement within the next 45-60 days.”
Meanwhile, another source familiar with the situation informed the publication that, while at least one of these production lines is expected to be established in Gujarat, Foxconn may look into other locations as well.
Foxconn announced its intention to apply for incentives under India’s semiconductor production plan a day after its split with Vedanta.
It said on Tuesday that it was working on an application for India’s Modified Programme for Semiconductors and Display Fab Ecosystem, a $10 billion scheme that offers incentives of up to 50% of capital expenditures for semiconductor and display production projects.
