Foxconn is reportedly planning to apply for setting up two fab plants in India. The development follows the termination of its joint venture (JV) with Vedanta Group to manufacture semiconductors in the country.
As per industry sources, one of the facilities that Foxconn is planning will be a compound semiconductor plant based on gallium nitride to make chips used widely in power electronics, electric vehicles (two-wheelers) and telecom devices. The other fab will be based on silicon. The company is looking to make a range of chips—14, 28, and 40 nanometres. While the details have not been finalised, Foxconn could also bring in a Taiwan-based fab company as a technology or JV partner.
Meanwhile, Foxconn also issued a statement to clarify why it walked out of the Vedanta JV and its next move. As per the statement, both parties mutually agreed to part ways. The company said that there was recognition from both sides that the project was not moving fast enough, there were challenging gaps they were not able to smoothly overcome, as well as external issues unrelated to the project.
Further, it added in the statement that building fabs from scratch in a new geography is a challenge, while pointing out that it is committed to investing in India. Foxconn has no intention to do anything but continue to strongly support the government’s ‘Make In India’ ambitions and establish a diversity of local partnerships that meet the needs of stakeholders, it asserted.
In its statement, Foxconn also confirmed the move to set up a fab plant. It said that the company is working toward submitting an application related to the modified program for semiconductors and display fab ecosystem. The company said it is already reviewing the landscape for optimal partners. Welcoming a diverse set of stakeholders, both in India and abroad, the company indicated that its potential partners should want to see India get to the next level and that they must complement Foxconn’s world-class supply chain management and manufacturing efficiency.
