According to a report by ET, Foxconn is currently in discussions with Taiwan Semiconductor Manufacturing Co (TSMC) and Japan’s TMH Group for potential joint venture and technology partnerships to establish semiconductor fabrication units in India. This comes after Foxconn ended its joint venture with India’s Vedanta Group to manufacture semiconductors in India.
Foxconn has been engaged in talks with TSMC and TMH for some time, and the details of these partnerships are expected to be finalized soon. TSMC is one of the largest chip foundries globally, while TMH provides semiconductor solutions and maintenance of manufacturing equipment.
Following a request from the Indian government to bring in tech expertise due to a lack of chip manufacturing know-how, Foxconn was also in advanced discussions with European company STMicro and US-based GlobalFoundries for potential technology partnerships.
In December 2021, the Indian government introduced a $10 billion semiconductor incentive program, offering a 50% subsidy on capital expenditure for companies establishing chip manufacturing units in the country.
Regarding the reasons for the split between Foxconn and Vedanta, Foxconn stated that both parties mutually agreed to part ways, emphasizing that it was not a negative outcome. Foxconn acknowledged that the project was not progressing as quickly as desired and faced challenging gaps that could not be easily overcome. They also mentioned external issues unrelated to the project.
Foxconn clarified that when they make course corrections, it is after careful consideration of the impact on stakeholders in the short term and the long-term health of the company and its shareholders. They expressed their commitment to investing in India, stating that building fabs from scratch in a new location is a challenge but that they fully support the Indian government’s “Make In India” initiative and aim to establish diverse local partnerships to meet stakeholder needs.
Picture Courtesy: Google/images are subject to copyright