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Foxconn to apply for India chipmaking incentives separately after pulling out of $19.5-bn JV with Vedanta

India chipmaking incentives

India chipmaking incentives – Foxconn (Hon Hai Technology Group) of Taiwan stated on Tuesday that it intends to apply for incentives offered by the Indian government under its semiconductor manufacturing policy, according to Reuters.    

The Taiwanese company has now stated that it is assessing the landscape in search of the best partners for the project in India. 

Foxconn intends to take advantage of India’s semiconductor manufacturing policy advantages by filing for a separate chip manufacturing facility in India. 

India chipmaking incentives

The company stated that it intends to enter the Indian semiconductor market aggressively by cooperating with international partners. The company is in active discussions with local and international partners on establishing semiconductor manufacture in India using mature chip manufacturing technologies for goods such as electric vehicles (EVs). 

“Foxconn is committed to India and sees the country successfully establishing a robust semiconductor manufacturing ecosystem,” it added. Foxconn is working on submitting an application.” 

Foxconn announced its withdrawal from its $19.5 billion joint venture with the Vedanta Group on Monday. In 2022, the two businesses created a joint venture, with Vedanta owning 67% of the stock, to establish a semiconductor fab plant in Dholera, Gujarat.  

“In order to explore more diverse development opportunities, Foxconn has determined it will not move forward on the joint venture with Vedanta,” the company stated in a statement.   

Foxconn said on Tuesday, “There was recognition from both sides that the project was not moving fast enough, and there were other challenging gaps we were not able to smoothly overcome, without sharing details.”