Foxconn in talks with TSMC, TMH group to make chips in India: Report

Foxconn is in talks with Taiwanese giant Taiwan Semiconductor Manufacturing Corporation (TSMC) and Japan’s TMH Group for a joint venture and technology partnership to start semiconductor manufacturing units in India, The Economic Times (ET) It was reported on Friday, citing people with knowledge of the matter.

This comes days after Foxconn and Vedanta Group canceled their joint venture in the chip business.

TSMC is among the world’s top chip manufacturers, and the TMH Group provides semiconductor solutions and manufacturing equipment operation and maintenance.

According to the report, Foxconn has been in talks with the two companies for some time now, and details of the partnership are expected to be announced soon. The companies are expected to manufacture advanced as well as old chips in India.

Taiwan’s JV has been canceled with Vedanta after the two failed to get a technical partner on board. The center asked them to do this because both Foxconn and Vedanta are new to the chip industry.

While at JV, Foxconn was in talks with STMicro in Europe and GlobalFoundaries in the US for a technology partnership. It quoted another person who could still sign the deal with these two companies ET He said.

Hon Hai Technology Group, better known as Foxconn, and Anil Agarwal-led Vedanta Group announced their joint venture to manufacture chips and display boards in India in February 2022, making it one of the first to participate in the India Semiconductor Mission (ISM). It has been considered the cornerstone of the center’s plan to develop local capabilities in the strategic industry.

In December 2021, the government announced a $10 billion semiconductor incentive program to provide a 50 percent subsidy on capital expenditure for companies to set up chip manufacturing units in the country.

In order to attract such projects under the International Solidarity Initiative, the countries decided to provide more subsidies of between 15 and 25 percent.