India’s semiconductor dream sees another leap as Taiwanese tech giant Foxconn Technology Group is reported to be exploring a partnership with STMicroelectronics NV to build a semiconductor factory in India.
Reports say Foxconn and Franco-Italian STMicro are applying for PLI incentives for a 40-nanometer chip plant. The government has asked Foxconn for more details about its partnership with STMicro, the people aware of the matter said.
It is to be noted that Foxconn is Apple Inc.’s key assembly partner.
Reports stated that by partnering with STMicro, contract manufacturer Foxconn is tapping the expertise of a chip industry pioneer to expand in the lucrative but difficult semiconductor business. Foxconn is also in talks with a few other companies that have chip-making technology.
This is the second attempt by Foxconn to begin a semiconductor manufacturing facility in India. Earlier, the company partnered with home grown billionaire Anil Agarwal’s Vedanta Limited and applied for setting up a fab manufacturing unit in Gujarat. However, the government didn’t approve of their application and asked them to reapply under the new scheme.
Later, both the companies announced breaking up of the partnership, and applying individually. It is believed that the reason for the rejection of their application was inexperience in chip making. Both Vedanta and Foxconn have no expertise in chip making and are new to the semiconductor sector, hence the search for a partner expertising in the segment.
The government had asked the companies to find partners who are in the semiconductor business. Recently, the government approved the application of US-based Micron Technology Inc., which will invest in a $2.75 billion assembly and testing facility in Gujarat.
Also Read: Ahmedabad Police Bust Arms Racket, Arrest 6
