India’s Gujarat state is holding talks with Foxconn over a semiconductor plant, a prime authorities official instructed Reuters, days after the Taiwanese big broke off a joint-venture plan with India’s Vedanta.
“We’re in contact with a number of potential traders, together with Foxconn … Gujarat is uniquely positioned to draw prime chipmakers,” mentioned Vijay Nehra, secretary of the science and expertise division in Gujarat.
Foxconn this week exited its mission with Vedanta, which was additionally deliberate for Prime Minister Narendra Modi’s dwelling state of Gujarat, citing points equivalent to gradual progress.
The breakup of the JV was a setback for Modi’s imaginative and prescient to determine India as a semiconductor manufacturing hub. Nevertheless, Foxconn mentioned later it might apply for India chip incentives by itself and was exploring new companions.
Foxconn didn’t instantly reply to a request for remark. Reuters is first to report its talks with Gujarat.
Modi needs to make chipmaking a prime precedence in pursuit of a “new period” in electronics manufacturing, however his plan has floundered to date.
Three firms utilized for incentives final yr — the Vedanta-Foxconn JV, Singapore-based IGSS Ventures and international consortium ISMC, which counts Tower Semiconductor as a tech associate — however to date no deal has been sealed.
Explaining the Vedanta break up on Tuesday, Foxconn mentioned “there was recognition from either side that the mission was not transferring quick sufficient” and there have been different “difficult gaps we weren’t capable of easily overcome”, with out giving extra particulars.
V. Lee, Foxconn’s consultant in India, wrote on LinkedIn: “Generally, you’ll fly increased when in solo.”
Its talks with Gujarat come weeks after Micron Know-how mentioned it can make investments as much as $825 million (practically Rs. 6,800 crore) in a semiconductor testing and packaging facility within the state.
© Thomson Reuters 2023