India’s state of Gujarat is in discussions with Foxconn regarding the establishment of a semiconductor plant, according to a top government official. The talks come shortly after Foxconn terminated its $19.5 billion joint-venture plan with Vedanta in Prime Minister Narendra Modi’s home state of Gujarat, citing slow progress as a significant issue.
The secretary of Gujarat’s science and technology department, Vijay Nehra, said that the state is in contact with Foxconn and other possible investors. He stressed how Gujarat is in a good position to draw top chipmakers.
The dissolution of the Vedanta-Foxconn joint venture dealt a blow to Modi’s vision of making India a hub for semiconductor manufacturing. However, Foxconn later announced that it would independently apply for chip incentives in India and explore new partners.
Gujarat’s conversations with Foxconn point to continued initiatives to support the state’s semiconductor industry. It comes after Micron Technology recently declared plans to invest up to $825 million in a Gujarat semiconductor testing and packaging facility.
Although there have been obstacles on the way to making India a centre for semiconductor manufacturing, Modi is still dedicated to making chips a priority as part of his plan for the manufacture of electronics. The discussions between Gujarat and Foxconn offer a peek of the prospects for expansion in the semiconductor industry and the government’s ongoing efforts to draw investment.