After junking Vedanta, Foxconn plans to apply separately for chip manufacturing unit in India

The microchip giant said it is reviewing the landscape for optimal partners for the project.
FILE - Foxconn headquarters in the Tucheng District, New Taipei City. (Photo | AFP)
FILE - Foxconn headquarters in the Tucheng District, New Taipei City. (Photo | AFP)

NEW DELHI: A day after pulling out from a joint venture with Vedanta Ltd., Taiwanese contract manufacturer Foxconn announced on Tuesday that it will apply separately for the “Modified Programme for Semiconductors and Display Fab Ecosystem”.

In a statement, Foxconn said the company is actively working towards submitting an application for the “Modified Programme for Semiconductors and Display Fab Ecosystem.” “We have been actively reviewing the landscape for optimal partners. We welcome a diverse set of stakeholders, both inside India and abroad, who also want to see India get to the next level and can complement Foxconn’s world-class supply chain management and manufacturing efficiency,” said Foxconn in a statement.

However, it refused to give any further details, citing the involvement of competitive and sensitive issues. “We understand there is a lot of interest in Foxconn’s plans and India’s information ecosystem is porous. However, due to the competitive and sensitive issues involved in negotiating large-scale investments, Foxconn is unable to disclose more information at this time,” said the company.

In September 2022, Foxconn, the contract manufacturer of Apple iPhones, and the oil-to-metal conglomerate Vedanta Ltd announced their plan to invest $19.5 billion in the country for establishing semiconductor and display production plants in Gujarat. The joint venture between Vedanta and Foxconn, known as Vedanta-Foxconn Semiconductors Ltd (VFSL), had submitted an application to manufacture 28-nanometre chips. 

However, their application was rejected by the government due to a lack of experience in chip manufacturing and the inability to secure a technology partner. On July 10, 2023, both companies announced moving out from the venture, without giving any reason. Anil Agarwal-led Vedanta said it has lined up other partners to set up India’s first foundry.

The company had the licence for production-grade technology for 40 nm from a prominent Integrated Device Manufacturer (IDM), and soon it will acquire a licence for production-grade 28 nm as well.

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