Foxconn to Build Large-Scale Semiconductor Complex in Gujarat, India

Joint Venture with Local Vedanta Group Established for 27 Trillion Won Investment

[Photo by Reuters-Yonhap News]

[Asia Economy Reporter Park Byung-hee] Foxconn, the Taiwanese contract manufacturer of Apple's iPhone, is set to build a large-scale semiconductor complex in India. Foxconn's semiconductor complex is expected to be recorded as the first tangible outcome following the Indian government's semiconductor industry support plan announced in December last year.

Major foreign media reported on the 13th (local time) that Foxconn, together with Indian mining company Vedanta Group, will invest approximately 1.54 trillion rupees (about 26.95 trillion KRW) to build an integrated semiconductor and display production complex in Gujarat, western India.

Vedanta Group Chairman Anil Agarwal gave significance to the project on Twitter, stating, "We have taken one step closer to India's Silicon Valley."

Foxconn and Vedanta will establish a joint venture related to semiconductor manufacturing, with Foxconn owning 37% and Vedanta Group owning 63% of the shares. Vedanta Group also plans to establish a wholly-owned subsidiary as a separate display glass manufacturer.

Chairman Agarwal revealed that the Gujarat state government has provided 400 acres (approximately 490,000 pyeong) of land located one hour away from Ahmedabad, the largest city in Gujarat, and promised subsidies for capital investment and electricity.

The Gujarat state government expressed expectations that the joint venture will create 100,000 new jobs in Gujarat.

Agarwal stated that the new factory complex will begin operations in 2024, with pilot operations lasting about six months to one year before full-scale production. He said, "India has sufficient demand for about 5 to 10 fabs," adding, "The current market size for semiconductors and display glass demand is about 30 to 35 billion USD (approximately 41.79 trillion to 48.76 trillion KRW) and is expected to grow into a 350 billion USD market within 10 years."

The Indian government approved a 10 billion USD subsidy support plan in December last year to foster the semiconductor industry. This is the first time a substantial semiconductor investment contract has been finalized.

Earlier, Singapore semiconductor company IGSS Ventures signed a memorandum of understanding (MOU) for fab construction with Tamil Nadu in southern India earlier this year. IGSS plans to sign a fab construction contract by the fourth quarter of this year and start production in early 2025. Karnataka in southern India also signed a letter of intent (LOI) for semiconductor factory construction investment with ISMC, a joint venture between Israel and Abu Dhabi.

This content was produced with the assistance of AI translation services.