Foxconn plans to apply for chip making unit in India separately

Electronics giant Foxconn is planning to apply separately for setting up a semiconductor manufacturing unit in the country. The Taiwanese firm said in a statement that it is reviewing the landscape for optimal partners for the project and that it is working toward submitting an application related to Modified Programme for Semiconductors and Display Fab Ecosystem.  

"Foxconn is working toward submitting an application related to Modified Programme for Semiconductors and Display Fab Ecosystem. We have been actively reviewing the landscape for optimal partners," Foxconn said in a statement. 

The new development has come after the company announced its exit from a semiconductor joint venture with Vedanta on Monday. The company had exited from the $19.5 billion joint venture with the mining baron Anil Agarwal's Vedanta Ltd. The company found it difficult to get a technology partner to make chips that are used in mobile phones to refrigerators and cars. 

Foxconn is planning to seek benefit of incentives that India is offering under its semiconductor manufacturing policy by applying for a separate chip manufacturing unit in India. 

The company is working towards applying under the government's “Modified Programme for Semiconductors and Display Fab Ecosystem", under which, the Modi government reworked the $10 billion plan offering financial incentives of up to 50% of capital costs for semiconductor and display manufacturing projects.