Foxconn to Set-up Chip Unit in India with Taiwanese and Japanese Companies

New Delhi, July 14 (KNN) Foxconn is holding discussions with Taiwan Semiconductor Manufacturing Co (TSMC) and Japan’s TMH Group for technology and joint venture partnerships to start semiconductor fabrication units in India, reported ET.

After pulling out from its joint venture to make chips with India’s Vedanta Group earlier this week, the company has been talking to the two companies for some time now. 

People with knowledge of the development told ET that It’s likely to soon finalise the details of the partnership to manufacture both advanced and legacy node chips.

While TSMC is among the world’s largest chip foundries, TMH provides semiconductor solutions as well as operation and maintenance of manufacturing equipment. Foxconn, TSMC and TMH did not respond to queries.

Earlier this week, ET had reported that Foxconn was looking to set up at least four to five semiconductor fabrication lines in India. The company has apprised the government of its plans, sources told ET. 

In December 2021, the government announced a USD 10 billion semiconductor incentive programme to provide a 50% subsidy on capital expenditure to companies that set up chip manufacturing units in the country. 

In order to attract such projects under the India Semiconductor Mission (ISM), states were prepared to provide further subsidies of 15-25%, leading to as much as three-fourths of the total project cost potentially being covered. Among the qualifying conditions for the incentives is partnership with a semiconductor manufacturing technology provider. 

There are only a handful of such firms in the world and Foxconn will need a tie-up with one such semiconductor foundry and fabrication company to qualify for the incentives, said another official.  (KNN Bureau)