Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.
Both Foxconn and Vedanta are looking for new partners now to set up a chipmaking facility in India after JV falls apart.
July 12, 2023
After withdrawing from the $19.5 billion joint venture with Vedanta Group, Taiwan-based electronics manufacturer Foxconn plans to apply for incentives offered by the Indian government as part of the Modified Programme for Semiconductors and Display Fab Ecosystem to set up a chipmaking unit in the country.
"Both parties mutually agreed to part ways. This is not a negative. There was recognition from both sides that the project was not moving fast enough, there were challenging gaps we were not able to smoothly overcome, as well as external issues unrelated to the project," says the statement issued by Foxconn.
The firm mentioned that it is looking for local as well as international partners to set up a chip production unit in India. As a manufacturer that works with device makers like Apple and Xiaomi, the company would have played a key role in securing orders for chips.
Setting up a fab unit is among the Indian government's priorities and the collapse of the JV will present a setback. Predictably, however, the government downplayed this development. The Union Minister of Electronics and IT, Ashwini Vaishnaw, tweeted, "Both the companies, Foxconn and Vedanta, are committed to India's semiconductor mission and Make in India program." Similarly, Minister of State for Electronics and IT Rajeev Chandrasekhar said the development has no impact on India's semiconductor fabrication plant goal.
Both Vedanta and Foxconn have refrained from talking about the reasons for the collapse of the joint venture. They had been trying hard to find a technology partner to manufacture semiconductors, as required to take advantage of benefits from the government's scheme. The Vedanta-Foxconn joint venture was believed to be in talks with STMicroelectronics as a technology partner.
India has been trying to become self-reliant and developing chipmaking capabilities is a crucial part of this. The country introduced a $10 billion plan in 2021 offering incentives of up to 50% of capital costs for semiconductor manufacturing initiatives.
The Foxconn-Vedanta JV was one of three entities that had applied for the incentives. Singapore-based IGSS Ventures and ISMC, including Israel-based Tower Semiconductor as the technology partner, were the other two entities. However, none of them received approval and now the government has invited fresh applications for the scheme. Foxconn and Vedanta are likely to apply separately for the incentives now.
Meanwhile, Micron recently announced that it would be investing $2.7 billion to set up a chip assembly and packaging unit in India.
— Gagandeep Kaur, Contributing Editor, special to Light Reading
Read more about:Europe
With more than a decade of experience, Gagandeep Kaur Sodhi has worked for the most prominent Indian communications industry publications including Dataquest, Business Standard, The Times of India, and Voice&Data, as well as for Light Reading. Delhi-based Kaur, who has knowledge of and covers a broad range of telecom industry developments, regularly interacts with the senior management of companies in India's telecom sector and has been directly responsible for delegate and speaker acquisition for prominent events such as Mobile Broadband Summit, 4G World India, and Next Generation Packet Transport Network.
You May Also Like
Rethinking AIOPs — It's All About the DataMar 12, 2024
SCTE® LiveLearning for Professionals Webinar™ Series: Fiddling with Fixed WirelessMar 21, 2024
SCTE® LiveLearning for Professionals Webinar™ Series: Cable and 5G: The Odd Couple?Apr 18, 2024
SCTE® LiveLearning for Professionals Webinar™ Series: Delivering the DAA DifferenceMay 16, 2024