Foxconn Withdraws from India’s Semiconductor Project, Impeding Tech Industry Goals
Taiwanese electronics manufacturer Foxconn has pulled out of its plans to establish a semiconductor facility in Gujarat, India, less than a year after the project was announced. This decision is seen as a setback for India’s technology industry objectives. However, India’s Minister of State for Electronics and Information Technology, Rajeev Chandrasekhar, assured that the withdrawal would not impact the country’s semiconductor fabrication goals.
Foxconn cited challenges and external issues unrelated to the project as reasons for the withdrawal, emphasizing its continued support for India’s “Make in India” initiative. Vedanta, the project’s partner, stated that it has lined up other partners to establish India’s first chip foundry. Industry analysts view Foxconn’s withdrawal as a blow to India’s semiconductor ambitions, attributing it to a lack of clear technology partnership and experience in managing large-scale semiconductor manufacturing operations.
Despite the setback, the Indian government remains committed to supporting the chipmaking industry, with various initiatives and a $10 billion fund to attract investors. Other companies, such as Micron, have recently announced plans to build semiconductor facilities in India, aiming to reduce reliance on foreign chipmakers and promote domestic manufacturing capabilities.
