Foxconn has has said it plans to set up at least four to five semiconductor fabrication lines in India, a media report said citing people familiar with the development.
The move comes after the firm announced its decision to pull out of a $19.5 billion semiconductor joint venture with Indian metals-to-oil conglomerate Vedanta. The world's largest contract electronics maker signed a pact with Vedanta last year to set up semiconductor and display production plants in Prime Minister Narendra Modi's home state of Gujarat.
According to the report, Foxconn has informed the Ministry of Electronics and Information Technology about the details of at least two memoranda of understanding (MoU) it has inked with technology partners.
“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,” said the Economic Times report cited above , quoting a senior government official who further added that the tech partner is likely to hold some equity in the new partnership.
“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 person familiar with the development told the publication, that while at least one of these production lines is likely to be set up in Gujarat, Foxconn may explore the possibility of other locations as well.
A day after the split with Vedanta, Foxconn said it intends to apply for incentives under India's semiconductor production plan.
It said on Tuesday it was working towards applying under India's Modified Programme for Semiconductors and Display Fab Ecosystem, a $10 billion plan offering incentives of up to 50 percent of capital costs for semiconductor and display manufacturing projects, Reuters reported.
"We have been actively reviewing the landscape for optimal partners," it said in a statement. "Foxconn is committed to India and sees the country successfully establishing a robust semiconductor manufacturing ecosystem."
In June, Foxconn also invested $246 million in two new projects in Vietnam. The giant from Taiwan (China), through its unit Foxconn Singapore, will invest approximately $250 million in an industrial park in northern Vietnam, "focusing on the production of electric vehicle components, controllers and other products to meet future development needs," it said in a statement to Reuters.
The new projects would bring its total investment in the Southeast Asian manufacturing hub to about $3 billion in nearly two decades since it built its first plant there, confirming its broader plans to expand outside of China amid ongoing tensions between Beijing and Washington.
The project aims to establish a factory specializing in the production and assembly of electrical accessories for electric vehicles. Upon completion in January 2025, it is expected to employ some 1,200 workers.
Meanwhile, the FMMV Foxconn Quang Ninh plant project covers an area of 4.1 hectares and has a total investment of roughly VND1.1 trillion (US$46.3 million).
