Gujarat in talks with Foxconn for semiconductor manufacturing unit after Vedanta split
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Ahmedabad: Gujarat government is engaged in discussions with Foxconn regarding the establishment of a semiconductor unit in the state, said a top government official. This development comes shortly after the Taiwanese giant terminated its $19.5 billion joint-venture plan with Indian company Vedanta.
"We are in touch with multiple prospective investors, including Foxconn. Gujarat is uniquely positioned to attract top chipmakers," stated Vijay Nehra, secretary of the science and technology department in Gujarat.
The decision by Foxconn to exit its project with Vedanta, which was originally planned for Prime Minister Narendra Modi's home state of Gujarat, was based on factors like slow progress. This setback hampers PM Modi's vision of positioning India as a semiconductor manufacturing hub. Nevertheless, Foxconn expressed its intention to independently apply for India's chip incentives and explore new partnerships, reported Reuters.
At present, there has been no immediate response from Foxconn regarding these talks with Gujarat.
Regarding the split from Vedanta, Foxconn stated on Tuesday that "there was recognition from both sides that the project was not moving fast enough." The company also acknowledged "challenging gaps we were not able to smoothly overcome." No further details were provided.
V. Lee, Foxconn's representative in India, shared on LinkedIn, "Sometimes, you will fly higher when in solo."
PM Modi has emphasised the importance of chipmaking in his pursuit of a "new era" in electronics manufacturing, but the plan has encountered challenges. Last year, three companies, including the Vedanta-Foxconn joint venture, Singapore-based IGSS Ventures, and global consortium ISMC with Tower Semiconductor as a tech partner, applied for incentives. However, no deal has been finalised yet.
Talks with Gujarat emerged a few weeks after Micron Technology announced its investment of up to $825 million in a semiconductor testing and packaging facility in the state.
