Foxconn, a significant manufacturer of electronic components in Taiwan, announced on Friday that it plans to invest $2 billion in India over the next five years.
Foxconn's chairman Young Liu told a prominent business news channel that the investment will be made in its electronic manufacturing facilities, semiconductors, etc.
Foxconn's announcement comes at a time when the company is seeking an alternative supply chain outside of China. Foxconn is one of the most important iPhone contract manufacturers and a beneficiary of the government's production-linked incentive programme.
Speaking at the SemiconIndia 2023 event, Liu said, “Prime Minister Narendra Modi once mentioned to me that IT stands for India and Taiwan. Honourable Prime Minister, Taiwan is and will be your most trusted and reliable partner… Let’s do this together.”
Additionally, Liu was optimistic about India's semiconductor mission.
“I am very optimistic about the way India is taking into the semiconductor space. The ecosystem for chips in India is for the very brave. India has said its government has a high say-do ratio. This kind of trust is important because India’s semiconductor development is just starting,”he said.
Recently, the company exited the $19.5 billion joint venture with Vedanta to establish a semiconductor plant in Gujarat. A government official stated that the dissolution of the joint venture between Anil Agarwal's Vedanta and Foxconn was primarily due to cultural differences.
Foxconn has yet to find a partner to begin its semiconductor manufacturing project, whereas Vedanta has stated that the company has identified its technology partner and will shortly finalise its plans.
Reuters reported on Thursday that a Foxconn subsidiary is in discussions to invest up to $200 million in Tamil Nadu to construct a new facility for electronic components.
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