Foxconn Technology Group is partnering with STMicroelectronics NV (STM) to develop a semiconductor factory in India, seeking state support to expand its presence in the country.

The move comes after Foxconn’s partnership with Vedanta Resources Limited was terminated. By teaming with STMicro now, Foxconn is leveraging the knowledge of a chip industry pioneer to expand in the lucrative but difficult semiconductor business.

Furthermore, the partners are applying for state support for a 40-nanometre chip facility, which is a mature chip used in cars, cameras, printers, and a range of other machines.