Foxconn may partner with TSMC and TMH to set up fab units

economictimes.indiatimes.com:

Foxconn is in talks with Taiwan Semiconductor Manufacturing Co (TSMC) and Japan’s TMH Group for technology and joint venture partnerships to start semiconductor fabrication units in India, said people with knowledge of the development. Foxconn and TSMC are both based in Taiwan. Foxconn, which ended its joint venture to make chips with India’s Vedanta Group earlier this week, has been talking to the two companies for some time now.

It’s likely to soon finalise the details of the partnership to manufacture both advanced and legacy node chips, a source close to the development told ET. While TSMC is among the world’s largest chip foundries, TMH provides semiconductor solutions as well as operation and maintenance of manufacturing equipment. Foxconn, TSMC and TMH did not respond to queries.

While it was part of the joint venture with Vedanta, Foxconn had been in advanced talks with European company STMicro and GlobalFoundries of the US for a technology partnership. This was after the central government asked the two to bring on board a technology partner as they lacked semiconductor manufacturing knowhow. Foxconn could also still sign up with STMicro or GlobalFoundries, said another official.

Earlier this week, ET had reported that Foxconn was looking to set up at least four to five semiconductor fabrication lines in India. The company has apprised the government of its plans, sources told ET. In December 2021, the government announced a $10 billion semiconductor incentive programme to provide a 50% subsidy on capital expenditure to companies that set up chip manufacturing units in the country.