A day after withdrawing from a $19.5 billion semiconductor joint venture with Vedanta, Foxconn has announced its plans to apply for India’s incentives under the semiconductor manufacturing policy. The company believes in India’s potential to successfully establish a strong semiconductor manufacturing ecosystem. Foxconn has been actively seeking to enter the chip manufacturing sector to diversify and expand into the electric vehicle market. The company is currently in talks with local and international partners to develop semiconductor production facilities in India. Taiwan and South Korea are dominant players in the global semiconductor manufacturing industry, and India’s $10 billion incentive scheme aims to boost its domestic semiconductor sector. Foxconn and Vedanta had signed a pact to set up semiconductor and display production plants in Gujarat. However, the decision to withdraw from the joint venture was mutual, based on the project’s slow progress and significant challenges. Both companies remain committed to their individual business plans. Shares of Vedanta fell over 2% following the announcement.
