Foxconn and STMicroelectronics Join Forces for Indian Semiconductor Venture

8 Sep 2023 , 09:48 AM

Foxconn Technology Group and STMicroelectronics NV are collaborating to bid to construct a semiconductor factory in India. The partnership aims to seek state support for establishing a 40-nanometer chip plant. Such chips are used in various applications, including automobiles, cameras, and printers.

Foxconn’s previous partnership attempt with Vedanta Resources Ltd. to set up a semiconductor plant in India fell apart due to challenges and delays. The semiconductor industry involves complex and costly processes, requiring specialized expertise and substantial investments.

The Indian government, led by Prime Minister Narendra Modi, actively encourages domestic semiconductor production by pledging financial support. Foxconn is also in discussions with other companies possessing chip-making technology for potential collaborations.

To proceed with a semiconductor project in India, applicants must provide detailed disclosures, including agreements with technology partners, financing plans, semiconductor types, and target customers. Other semiconductor-related companies, such as Advanced Micro Devices Inc. (AMD) and Applied Materials Inc., also invest in India by establishing research and engineering centers.

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