Foxconn Technology Group, is joining forces with STMicroelectronics NV in a joint venture aimed at constructing a semiconductor manufacturing facility in India. Their objective is to secure state support to expand their presence in the South Asian nation.
The partnership between Foxconn and the French-Italian STMicro involves seeking Indian government backing for the establishment of a 40-nanometer chip plant. These advanced chips find application in various devices, including automobiles, cameras, printers, and a diverse range of machinery.
This decision follows Foxconn’s previous attempt to collaborate with Vedanta Resources Ltd, a company controlled by billionaire Anil Agarwal. Through its partnership with STMicro, the Taiwanese electronics manufacturer is now teaming up with a seasoned leader in the semiconductor industry to enhance its presence in the challenging yet rewarding semiconductor sector.
According to sources, New Delhi has requested additional information from Foxconn regarding its alliance with STMicro. Furthermore, Foxconn currently engaged in discussions with additional companies possessing chip manufacturing expertise, as confirmed by an insider.
Indian Prime Minister Narendra Modi has committed $10 billion to attract international semiconductor manufacturers, assuring that his government will cover 50% of the expenses for establishing semiconductor facilities. As a result of this initiative, US memory chip company Micron Technology has unveiled plans to construct an assembly and testing facility in Gujarat with an investment of $2.75 billion.
Furthermore, other companies involved in the semiconductor industry are also making inroads into India. Advanced Micro Devices, and equipment manufacturer Applied Materials, for instance, intend to allocate $400 million each for the establishment of research and development as well as engineering centers in the thriving tech hub of Bengaluru.
(Source: Sankalp Phartiyal | Bloomberg | Taipei Times)
