Foxconn Technology Group, having already applied to establish a semiconductor plant in India in partnership with Vedanta, is now considering setting up a second plant without seeking any government incentives. Chairman Young Liu led a management delegation during a recent visit to India, where discussions included meetings with Prime Minister Narendra Modi aimed at strengthening long-term business relations. Foxconn has participated in India’s production-linked incentive (PLI) scheme through its subsidiaries, supplying components to Apple Inc. and other mobile device manufacturers.
According to a senior government official familiar with the developments, Foxconn’s enthusiasm for India is evident as it explores the possibility of investing in another chip plant independently of government financial support, demonstrating its commitment to long-term engagement.
Foxconn’s joint venture with Vedanta has applied for approval to establish a semiconductor facility in Dholera, Gujarat, under a Rs 76,000-crore scheme that offers upfront financial incentives to eligible projects. The JV, in collaboration with a technology provider, plans to manufacture 28 nanometre chips initially, with Foxconn holding a 40 per cent stake in the venture.
David Reed, a seasoned professional formerly with NXP Semiconductors, has been recruited by Vedanta to oversee the venture. Government sources anticipate approval for the Foxconn-Vedanta proposal in the near future under India’s semiconductor policy, which aligns incentives with international standards.
Foxconn, renowned as the world’s largest electronics manufacturer with annual revenues exceeding $224 billion, currently procures over $40 billion worth of chips globally annually. The company’s expanding interests in electric vehicles could further increase its demand for chips, potentially sourcing from India.
Chairman Young Liu emphasized during the visit that Foxconn aims to deepen partnerships and explore cooperation in emerging sectors such as semiconductors and electric vehicles.
Although plans for an electric vehicle plant are in progress, details regarding location and investments are still under development.
The company has committed to significantly increasing employment opportunities in India, aiming to create approximately 200,000 jobs, a substantial increase from its current workforce of around 35,000 employees. This target aligns with Foxconn’s strategy of scaling up operations over the next three to four years, leveraging its manufacturing capabilities.
While Foxconn has expressed interest in expanding its semiconductor footprint following the acquisition of Macronix International in 2021, the company clarified it has not yet finalized definitive agreements for additional investments.
