Foxconn, a Taiwanese contract manufacturer, is reportedly collaborating with the French-Italian semiconductor company STMicroelectronics to establish a semiconductor plant in India. According to Sources, the companies have applied for the Centre's incentive scheme to establish a 40-nanometer chip plant in the country. These chips are used in a variety of applications, including automobiles, cameras, and printers.

As per the report, the government has requested more information from Foxconn regarding the partnership with STMicro. According to the report, the contract manufacturer is also in talks with a number of other companies that have chip-making technology.

To qualify for the incentives, Foxconn is expected to make detailed disclosures to the authorities on a variety of topics. The company will need to provide more information on whether it has binding agreements with a technology partner, as well as provide more information on its financing plans. Furthermore, the companies may be required to specify the type of semiconductors they intend to manufacture as well as the target customers.

The report comes just two months after Foxconn backed out of a $19.5 billion joint venture with Indian conglomerate Vedanta to manufacture semiconductors in the country. The decision to work with a foreign partner rather than an Indian company is most likely due to the country's lack of expertise in the chipmaking space. Both Vedanta and Foxconn have no prior experience in the semiconductor industry.