Foxconn in talks to set up 4-5 semiconductor fab units in India: Report

Taiwanese major Foxconn has told the government that it wants to establish at least four to five semiconductor fabrication lines in India, a media report said citing people aware of the development.

The move comes after the firm announced its decision to withdraw from 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,” The Economic Times report cited above stated, quoting a senior government official. The official 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 aware of 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 per cent 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."

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