New Delhi: Foxconn Technology Group, which has applied for the establishment of the first semiconductor (chip) plant in India in collaboration with Vedanta Group, is also ready to set up a second factory. The company has shown interest in setting up a second chip plant even without government incentives.
A delegation of the company led by Young Lui, chairman of Foxconn, was on a visit to India last week. He has also met Prime Minister Narendra Modi.
Louis had come to India with the aim of strengthening the company’s business ties for a long time. He has participated in India’s Production Linked Incentive (PLI) scheme through two of his companies (Foxconn Hon Hai and Bharat FIH) as a vendor to Apple and other mobile device manufacturers.
A top government official with knowledge of the matter said, ‘Foxconn is very excited about India. They have shown interest in setting up their second chip factory in India even without financial help from the government. This shows that she wants to work in India for a long time.
Foxconn has already applied to set up a semiconductor plant at Dholera in Gujarat through a joint venture with Vedanta. It has made this application under the PLI scheme, in which financial incentives of about Rs 50,000 crore will be given to eligible projects.
Foxconn and Vedanta have promised an investment of Rs 1.54 lakh crore. The two companies have also tied up with a technology company to initially manufacture 38 nanometer chips. Foxconn will hold a 40 per cent stake in the joint venture. It is among the three companies to apply under the PLI scheme.
Vedanta has hired business veteran David Reid, who was earlier with NXP Semiconductors. According to sources, the proposal of Foxconn-Vedanta is expected to get the green signal from the government soon.
Under the semiconductor policy, the government is giving incentives as per global standards. The government is ready to give 50 percent of the cost of setting up the factory as incentive.
