Foxconn is in discussions with Taiwan Semiconductor Manufacturing Co (TSMC) and Japan's TMH Group for technology and joint venture partnerships to launch semiconductor fabrication plants in India. Taiwan is the home of both Foxconn and TSMC. Foxconn has been in communication with the two businesses for some time before terminating its joint venture to manufacture chips with India's Vedanta Group earlier this week.

 

The cooperation to produce both advanced and older node chips will likely soon be finalized. While TMH offers semiconductor solutions as well as operation and maintenance of manufacturing equipment, TSMC is one of the biggest chip foundries in the world. Inquiries to Foxconn, TSMC, and TMH went unanswered.

 

Foxconn had advanced discussions for a technical cooperation with the US business GlobalFoundries and the European company STMicro when it was a part of the joint venture with Vedanta. This came about after the central government requested that the two recruit a technological partner because they lacked experience in chip manufacture. Another official stated that Foxconn could still execute a contract with STMicro or GlobalFoundries.

 

At least four to five semiconductor production lines were what Foxconn was hoping to establish in India. The business has informed the government of its intentions. The government announced a $10 billion semiconductor incentive scheme in December 2021 to give businesses who establish chip manufacturing units in the nation a 50% capital expenditure rebate.

 

States were prepared to offer additional subsidies of 15–25% in order to entice such projects under the India Semiconductor Mission (ISM), potentially covering up to three-fourths of the overall project cost.