Foxconn, the Taiwanese electronics manufacturing services company, has recently applied to establish a semiconductor fabrication unit in India, according to disclosures made to the Parliament by Rajeev Chandrasekhar, the Minister of State for Electronics and IT.
The application falls under the “modified scheme for setting up semiconductor fabs in India,” part of the government’s initiative to boost the electronics manufacturing sector, with a particular focus on semiconductors.
This move follows Foxconn’s withdrawal from a joint venture with the Vedanta Group, which had plans for a chip plant in Gujarat with an investment of approximately Rs 1.5 lakh crore. Despite this setback, Foxconn remains committed to the semiconductor sector in India.
In June 2023, Micron received approval for the first semiconductor unit under the Semicon India programme, and construction is already underway, contributing to the positive momentum in the sector.
Foxconn has been actively expanding its presence in India, driven by the goal of doubling its workforce and investment in the country by the next year.
As a major supplier to Apple and the world’s largest contract manufacturer of electronics, Foxconn has strategically invested in manufacturing facilities in southern India to diversify operations away from China.
V Lee, Foxconn’s representative in India, announced on LinkedIn, on Indian Prime Minister Narendra Modi’s 73rd birthday, that the company aims to double employment, foreign direct investment (FDI), and business size in India by the next year, although specific details were not provided.
Currently operating an iPhone factory in Tamil Nadu with 40,000 employees, Foxconn is set to invest $600 million in two projects in Karnataka for manufacturing casing components for iPhones and chip-making equipment, as announced by the state in August.
Liu Young-way, the company’s Chairman, expressed optimism about India’s potential during an earnings briefing, emphasizing that their current investment of several billion dollars is just the beginning. This signals a strong indication that Foxconn’s commitment to India is poised to grow in the coming years.
(With inputs from agencies)