Taiwanese electronics manufacturer Foxconn announced on Tuesday its plans to seek incentives offered by India under its semiconductor manufacturing policy. This comes a day after the company terminated its $19.5 billion chipmaking joint venture with Vedanta, an Indian conglomerate. Foxconn, the world’s largest contract electronics maker, stated that it intends to apply for the government’s Modified Program for Semiconductors and Display Fab Ecosystem, which provides financial incentives of up to 50% of capital costs for semiconductor and display manufacturing projects. Despite the setback with Vedanta, Foxconn remains committed to India and believes in the country’s potential to establish a thriving semiconductor manufacturing ecosystem. Prime Minister Narendra Modi has prioritized chipmaking as part of India’s economic strategy, aiming to attract foreign investors to produce chips locally for the first time.
According to a source familiar with the matter, Foxconn is currently engaged in discussions with various local and international partners to develop semiconductor production in India, particularly for electric vehicles. The Indian government has emphasized that Foxconn’s decision to part ways with Vedanta has no impact on India’s chipmaking plans and considers both companies as valued investors in the country.