Foxconn could make semiconductor chips with TSMC, TMH in India
What's the story
Electronics major Foxconn recently called off its semiconductor joint venture (JV) with Vedanta. At the time, the company reiterated its commitment to India's semiconductor project.
Now, it is in talks with chip-making giant Taiwan Semiconductor Manufacturing Company (TSMC) and Japan's TMG, as per Economic Times.
The companies are in talks to set up a semiconductor fabrication plant in the country.
Context
Why does this story matter?
India's semiconductor aspirations took a hit when Foxconn and Vedanta decided to not go through with their JV. Despite the agreement between the firms, that partnership never took off.
A bitter end to that journey was expected by many. However, both Foxconn and Vedanta are trying to rope in new partners to complete what they started.
New JV
Foxconn has been in talks with TSMC and TMH
Foxconn, TSMC, and TMH could form a JV and technology partnership to manufacture semiconductors in India. According to the report, Foxconn has been involved in talks with the two companies for a while.
Details of the partnership are expected to be announced in the coming days. The trio will manufacture both advanced and legacy chips in India.
The partners
Semiconductor expertise of TSMC and TMH will help Foxconn
Both Foxconn and TSMC are based in Taiwan. TSMC is the world's largest semiconductor manufacturer, producing over 50% of global output.
Roping in TSMC would be a significant achievement for Foxconn and India alike. Meanwhile, Japan-based TMH Group offers semiconductor solutions and operation and maintenance of manufacturing equipment.
The expertise of TSMC and TMG will help Foxconn make a better case.
More units
Foxconn plans to set up 4-5 semiconductor fab plants
Foxconn has reportedly told the government it plans to set up 4-5 semiconductor fabrication plants in India. It is unclear whether the electronics giant will partner with TSMC and TMH for every unit.
One of the plants is expected to be in Gujarat, while the locations of the others aren't available yet.
The technology partners are set to have equity in the JV.
Vedanta
Vedanta has lined up new partners: Chairman Anil Agarwal
Meanwhile, Foxconn's former partner Vedanta is also trying to onboard new partners for its semiconductor venture. Vedanta Group chairman Anil Agarwal recently said the company has lined up partners for its semiconductor venture.
Vedanta is yet to disclose who these partners are. Its aim is to begin its foray into semiconductor and display fabs this year itself.