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Gujarat Government in Talks with Foxconn With Regards to Semiconductor Manufacturing Plant

Asia Manufacturing Review Team | Friday, 14 July 2023

 Asia Manufacturing Review Team

A top government official in India's Gujarat state told that the state is in talks with Foxconn about establishing a semiconductor plant, just days after the Taiwanese conglomerate called off a $19.5 billion joint venture with India's Vedanta.

"We are in contact with a number of prospective investors, including Foxconn... Gujarat is uniquely positioned to attract top chipmakers," said Vijay Nehra, Gujarat's secretary of science and technology.

Foxconn announced this week that it was abandoning its project with Vedanta, which was also slated for Prime Minister Narendra Modi's home state of Gujarat, citing issues such as slow progress. The breakup of the JV was a setback for PM Modi's vision to establish India as a semiconductor manufacturing hub. However, Foxconn said later it would apply for India chip incentives on its own and was exploring new partners.

Modi wants to make chipmaking a top priority in pursuit of a "new era" in electronics manufacturing, but his plan has so far floundered. Three companies applied for incentives last year -- the Vedanta-Foxconn JV, Singapore-based IGSS Ventures and global consortium ISMC, which counts Tower Semiconductor as a tech partner -- but so far no deal has been sealed.

Explaining the Vedanta split on Tuesday, Foxconn said "there was recognition from both sides that the project was not moving fast enough" and there were other "challenging gaps we were not able to smoothly overcome", without giving more details.