Apple iPhone-maker Foxconn submits application for setting up semiconductor fabrication unit in India
Apple iPhone-maker Foxconn submits application for setting up semiconductor fabrication unit in India
Electronics manufacturing services company from Taiwan, Foxconn, has recently submitted an application to establish a semiconductor fabrication unit in India. This development was disclosed to the Parliament by Rajeev Chandrasekhar, the Minister of State for Electronics and IT. The application was made under the “modified scheme for setting up of semiconductor fabs in India”, a government initiative aimed at boosting the electronics manufacturing sector in the country, including semiconductors. The government’s strategy involves incentivising large investments in electronic goods and appliances and promoting exports.
This move by Foxconn comes after its exit from a joint venture with the Vedanta Group, which had plans to set up a chip plant in Gujarat with an investment of around Rs 1.5 lakh crore. Despite this setback, Foxconn’s interest in India’s semiconductor sector remains strong.
Adding to the momentum in this sector, the first semiconductor unit by Micron was approved in June 2023 under the Semicon India programme, and the construction of the unit has already commenced.
Foxconn has been rapidly expanding its presence in India, driven by its aim to double its workforce and investment in the country by next year. As a supplier to Apple and the world’s largest contract manufacturer of electronics, Foxconn has invested in manufacturing facilities in the southern part of India as part of its strategy to diversify its operations away from China.
V Lee, Foxconn’s representative in India, stated in a LinkedIn post on Indian Prime Minister Narendra Modi’s 73rd birthday that the company was targeting to double its employment, foreign direct investment (FDI), and business size in India by next year. However, he did not provide further details.
Foxconn already operates an iPhone factory in the state of Tamil Nadu, employing 40,000 people. In August, the state of Karnataka announced that Foxconn will invest $600 million in two projects in the state to manufacture casing components for iPhones and chip-making equipment. Liu Young-way, the company’s Chairman, expressed optimism about the potential in India during an earnings briefing last month, stating that their current investment of several billion dollars is just the beginning. This suggests that Foxconn’s commitment to India is likely to grow in the coming years.
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