Foxconn Explores Partnership with TSMC and TMH Group to Establish Chip Manufacturing in India

Foxconn Engages in Talks for Semiconductor Manufacturing Partnership in India

According to sources familiar with the matter, Foxconn is engaged in discussions with two industry leaders, Taiwan Semiconductor Manufacturing Co (TSMC) and TMH Group, to form a joint venture and technology partnership for establishing semiconductor fabrication units in India.

The aim is to manufacture both advanced and legacy chips within the country. These developments follow the recent cancellation of Foxconn's chip joint venture with the Vedanta Group.

The Potential Partners: TSMC and TMH Group

Taiwan Semiconductor Manufacturing Co (TSMC) is globally recognized as one of the leading chip makers, known for its cutting-edge technology and manufacturing capabilities.

TMH Group specializes in providing semiconductor solutions, as well as operation and maintenance services for manufacturing equipment. The partnership with these industry giants could provide Foxconn with valuable expertise and resources to support chip manufacturing in India.

Building on Earlier Efforts and Expanding Partnerships

Foxconn has been actively exploring opportunities in the semiconductor industry and has reportedly been in discussions with multiple potential partners. Prior to the talks with TSMC and TMH Group, Foxconn was engaged in negotiations with Europe's STMicro and GlobalFoundaries of the United States for potential technology partnerships.

Although the details of the collaboration are yet to be announced, Foxconn may still pursue deals with these companies in the future.

Foxconn's Previous Joint Venture with Vedanta Group

In February 2022, Foxconn and the Vedanta Group announced a joint venture to manufacture chips and display panels in India, aligning with the objectives of the India Semiconductor Mission (ISM).

However, the partnership between Foxconn and Vedanta Group was dissolved due to the inability to secure a technology partner, as required by the Indian government. Foxconn's ongoing efforts to establish chip manufacturing in India reflect its commitment to supporting the country's strategic initiatives.

India's Push for Semiconductor Manufacturing

India has recognized the strategic importance of developing domestic capabilities in the semiconductor industry. In December 2021, the government introduced a $10 billion semiconductor incentive program, offering a 50% subsidy on capital expenditure to companies establishing chip manufacturing units within the country.

Additionally, states participating in the India Semiconductor Mission (ISM) have pledged further subsidies of 15-25% to attract semiconductor projects. Foxconn's potential partnerships align with India's efforts to strengthen the semiconductor ecosystem and foster technological self-reliance.

As Foxconn explores partnerships with TSMC and TMH Group for chip manufacturing in India, the collaboration could significantly contribute to India's semiconductor industry ambitions.

The establishment of semiconductor fabrication units would not only enhance domestic capabilities but also bolster the country's position in the global chip manufacturing landscape.