This announcement follows Foxconn’s withdrawal from a joint venture with the Vedanta Group.
Foxconn or Hon Hai Precision Industry Company, a Taiwanese electronics manufacturing services firm, has applied to establish a semiconductor fabrication plant in India.
Rajeev Chandrasekhar, the Minister of State for Electronics and IT, stated in a written response to the Lok Sabha that the government has implemented various initiatives to enhance the production of electronics, including semiconductors. These measures aim to attract substantial investments in electronic devices and appliances and to encourage exports.
Chandrasekhar noted, “Under the revised plan for establishing semiconductor fabs in India, Foxconn has filed an application to build a semiconductor fabrication facility in the nation.” This announcement follows Foxconn’s withdrawal from a joint venture (JV) with the Vedanta Group to construct a semiconductor factory in India. The JV was not progressing well due to differences in roll out strategies.
The joint venture previously intended to establish a semiconductor factory in Gujarat, investing approximately Rs 1.5 lakh crore. Chandrasekhar mentioned that in June 2023, the first semiconductor facility by Micron was sanctioned as part of the Semicon India program, and its construction has commenced.
Vedanta is in the process of creating an integrated semiconductor fabrication facility capable of handling 300 mm size wafers, focusing on technology nodes of 28nm and 40nm. In the initial phase, Vedanta plans to establish a production capacity of 40,000 wafers per month. This capacity is aimed at serving various applications, including mobile devices, consumer electronics, automotive components, and networking equipment.