Gujarat Engages in Discussions with Foxconn for Chip Plant Following Company’s Exit from Vedanta Deal

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Gujarat, a state in India, is currently in talks with Foxconn regarding the establishment of a semiconductor plant, according to a top government official who spoke to Reuters. This comes after Taiwanese giant recently terminated its $19.5 billion joint-venture plan with Vedanta, an Indian company.

Vijay Nehra, the secretary of Gujarat’s science and technology department, stated that they are actively communicating with multiple potential investors, including Foxconn. Nehra emphasized that Gujarat is in a unique position to attract leading chipmakers to the region.

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Read more about the Foxconn deal- 

The termination of the Vedanta joint venture was a setback for Prime Minister Narendra Modi’s vision of positioning India as a hub for semiconductor manufacturing. However, Foxconn later announced that it would independently apply for chip incentives in India and explore new partnership opportunities.

This decision to exit the project with Vedanta was attributed to slow progress and other challenges that were difficult to overcome. The specific details of these challenges were not provided.

The giant has not yet commented on the ongoing discussions with Gujarat. Reuters is the first to report on these talks.

Modi has prioritized the development of the chipmaking industry as a key element of his plan to revolutionize electronics manufacturing in India. However, the realization of this vision has faced obstacles thus far.

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Last year, three companies, including the Vedanta-Foxconn joint venture, applied for incentives to support their semiconductor initiatives.

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The talks between Gujarat and Foxconn present a new opportunity for the state and the company to collaborate on establishing a semiconductor plant. It comes shortly after Micron Technology’s announcement of its plans to invest up to $825 million in a semiconductor testing and packaging facility in Gujarat.

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The discussions between Gujarat and Foxconn signify a potential positive step forward in India’s pursuit of becoming a prominent player in the semiconductor industry, and it will be interesting to see how the partnership unfolds in the coming months.

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