Foxconn announces $100 million investment in chip joint venture in India

According to reports, the main iPhone foundry Foxconn announced today that it will cooperate with Indian natural resources group Vedanta to build a chip factory in India. Foxconn said the two companies had agreed to form a chip joint venture in which Foxconn would invest $118.7 million for a 40 percent stake. Vedanta is India's largest aluminum producer and a leading oil and gas supplier, and Vedanta chairman Anil Agarwal will serve as chairman of the joint venture.

The joint venture aims to meet the huge demand from the local electronics industry in India. At the same time, it will also make Foxconn a major foreign technology manufacturer in response to India's "localization of chip manufacturing" strategy. "The joint venture will support the vision of the Prime Minister of India to create a semiconductor manufacturing ecosystem in India," Foxconn said in a statement.

The progress of the chip project will also depend on subsidies from India's central and state governments, as well as loans from banks, the people said. In December last year, India's science and technology minister said that India had approved a $10 billion incentive plan to attract global semiconductor and display makers to build factories in India, thereby promoting India to further build a global electronics production center.

Under the program, the Indian government will provide eligible display and semiconductor manufacturers with the financial support of up to 50 percent of the project cost, the Indian government said in a statement at the time. At that time, sources said that Israel's Tower Semiconductor and Foxconn were interested in building chip factories in India.

Foxconn Chairman Liu Yangwei has made chip development one of the foundations for the company's push for electric vehicles. Foxconn bought Taiwan-based chip maker Macronix's chip factory in Hsinchu last year to develop silicon carbide chips for cars.

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