After nixing the joint venture deal with Vedanta Group, Taiwan-based Foxconn is reportedly discussing with Taiwan Semiconductor Manufacturing Co (TSMC) and Japan’s TMH Group for technology for erecting semiconductor fabrication units in India.
As per the report by the famous daily, The Economic Times, the details of the partnership will be set down in how the companies will proceed to manufacture both advanced and legacy node chips.
Taiwan Semiconductor Manufacturing Co (TMSC) is the world leader in semiconductor foundry, while TMH provides various solutions in the supply chain of semiconductor manufacturing parts procurement, logistics, and manufacturing.
TSMC produces over 50 percent of the chips manufactured worldwide. It made 33.5 percent more revenue to $75.88 billion in 2022. The company shipped 15.3 million 12-inch equivalent wafers last year against 14.2 million in 2021. Top semiconductor companies, like AMD, Apple, ARM, Broadcom, Marvell, MediaTek, and Nvidia, are its clients.
Let’s Break Up: Foxconn To Vedanta
Earlier this week, Foxconn nixed its deal with Anil Agarwal-controlled Vedanta, intending to apply separately for incentives under the government’s semiconductor production plan.
The Vedanta-Foxconn joint venture was one of the five applicants pursuing government incentives under a $10-billion package declared in December 2021 for bolstering and promulgating domestic semiconductor manufacturing.
Chip manufacturing companies can avail 50 percent subsidy on capital expenditure under the scheme.
Further, an additional 15-25 percent subsidy by states attracts the companies if they undertake projects under the India Semiconductor Mission (ISM). That means as much as 75 percent of the total project cost could be funded from the scheme.
Foxconn reportedly approached European company STMicro and GlobalFoundries of the US to join their JV as technology partners.
The backdrop of bringing technology partners on board was the recommendation by the Central government since Vedanta-Foxconn JV lacked semiconductor manufacturing know-how.
In furtherance of its intention to set up chip units in India, Foxconn might bring STMicro or GlobalFoundries on board.
Foxconn: Steadfast For Its Indian Chip Manufacturing Plans
Foxconn on Wednesday said it would continue its Indian plans afresh with new partners.
In a statement, Foxconn said it initiated discussions with Indian and global companies for possible partnership and will resubmit its application to the government under the Modified Programme for Semiconductors and Display Fab Ecosystem policy.
“It is challenging to build fabs from scratch in new geography, but Foxconn is committed to investing in India. We have been working on such challenges since the 1980s. We will continue to strongly support the government’s “Make In India” ambitions and establish a diversity of local partnerships that meet the needs of stakeholders.”