Shulou(Shulou.com)11/24 Report--

CTOnews.com, July 14, Foxconn and Indian metal oil group Vedanta "broke up" and did not give up the $19.5 billion plan to build a plant in India. TSMC and Japan's TMH could be Foxconn's new partners in the project, according to local media The Economic Times.

Photo Source: Foxconn reported that Foxconn is actively promoting plans to build a plant in India, stopping its cooperation with Vedanta because of questioning the Indian government's chip production incentive program.

It is reported that during the cooperation between Foxconn and Vedanta, Foxconn expressed interest in cooperating with STMicroelectronics in Europe and GlobalFoundries in the United States, and the option has not been completely ruled out.

Foxconn is expected to launch four to five contract chip production lines in India. Indian officials are aware of Foxconn's intentions, but the company has not yet submitted a formal application for subsidies.

Foxconn and the Indian government are in dispute over subsidies, with a total investment of $10 billion (currently about 71.6 billion yuan). Foxconn wants the Indian government to subsidize half of the subsidy, while the government considers it reasonable to build a factory of 15-25%.

The progress timeline of Foxconn's India chip project is as follows:

February 14, 2022: Foxconn and Vedanta announce a partnership to produce semiconductors in India to diversify their business. Foxconn said it would "greatly boost domestic electronics manufacturing in India".

September 13, 2022: Vedanta and Foxconn sign an agreement to invest $19.5 billion (CTOnews.com Note: currently about 140.985 billion yuan) to build semiconductor and display production lines. Gujarat, the hometown of Indian Prime Minister Narendra Modi, has been chosen as the site of the factory.

September 14, 2022: Vedanta Chairman Anil Agarwal said the company does not believe there is a funding problem with the joint venture.

May 19, 2023: India's Deputy Minister of Information Technology Chandra Seka (Chandrasekhar) said the joint venture was "trying" to work with technology partners.

May 31, 2023: progress in the joint venture between Vedanta and Foxconn is slow as negotiations involving Italian and French semiconductors stall. Sources said the joint venture had been licensed in cooperation with Italian Semiconductor, but the Indian government had made it clear that it wanted Italian Semiconductor to "participate in more games", such as taking a stake in a partnership.

June 23, 2023: Indian Minister of Information Technology and Telecommunications Ashwini Vaishnaw said that Foxconn and its local partner Vedanta in India had been asked to submit application documents again, and the Indian government would evaluate it on the basis of the new proposal.

June 30, 2023: India's market regulator fined Vedanta for issuing a press release showing that it had partnered with Foxconn to produce semiconductors in India, while the deal was with Vedanta's holding company, violating disclosure rules.

July 10, 2023: Foxconn withdraws from its chip joint venture with Vedanta, but does not say why. The company said only that the project had been under way for more than a year, but that the two sides had jointly decided to terminate the joint venture.

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