Gujarat in Talks with Foxconn for Semiconductor Plant Amid Vedanta Fallout

New Delhi: Gujarat is engaging in discussions with Foxconn regarding the establishment of a semiconductor plant. This development comes shortly after Foxconn terminated a $19.5 billion joint venture with Vedanta in India. Gujarat’s science and technology department secretary, Vijay Nehra, stated that they are in contact with multiple potential investors, including Foxconn, and emphasized Gujarat’s favourable position to attract leading chipmakers.

The dissolution of the Vedanta-Foxconn joint venture was a setback for Prime Minister Narendra Modi’s goal of establishing India as a semiconductor manufacturing hub. However, Foxconn later announced its intention to independently apply for chip incentives in India and explore new partnerships. As of now, Foxconn has not responded to requests for comment, and Reuters is the first to report on the talks with Gujarat.

Prime Minister Modi is determined to prioritize chipmaking as a key aspect of advancing the electronics manufacturing sector. Nevertheless, his plans have faced challenges thus far. Last year, three companies, including the Vedanta-Foxconn joint venture, applied for incentives, but no agreements have been finalized to date. Foxconn cited slow progress and unresolved difficulties as reasons for the split from Vedanta, without providing further details.

Foxconn representative V. Lee expressed on LinkedIn, “Sometimes, you will fly higher when in solo,” elaborating on the company’s decision to pursue independent endeavours. These discussions with Gujarat follow Micron Technology’s recent announcement of investing up to $825 million in a semiconductor testing and packaging facility in the state.

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