India has been waiting for its first semiconductor plan since the day Foxconn and Vedanta announced a joint venture worth $19.5 billion in February 2022. This joint venture aimed to support Indian Government in its "Make in India" movement and to boost the domestic manufacturing of electronics in India.
The semiconductor plant was supposed to be built in Dholera Industrial City, Gujarat but a recent press release by Foxconn also known as Hon Hai Technology Group, Taiwan left everybody stunned with their announcement of getting out from the deal with Vedanta Group on July 11, 2023, in absence of missing Tech. There were no exact reasons provided by the companies for breaking up the deal except Foxconn's official statement which says -"the breakup was not acrimonious—both sides just recognized the “project was not moving fast enough, there were challenging gaps we were not able to smoothly overcome, as well as external issues unrelated to the project”.
Since the breakup of the companies has been announced many speculations are being made for the future of the semiconductor industry in India. This article also covers the impact of this decision and the future roadmap of the semiconductor industry from here.
Impact of Foxconn-Vedanta Deal Breakup on India’s Semiconductor Plan
Though the government of India in their official statement said that "this news would not be going to India's semiconductor industry plan" to be practical, it would give some setbacks for the Indian semiconductor industry. Such as-
These difficulties should be overcome because, according to the Indian government, there are numerous other current innovations going and no barriers to the expansion of Indian semiconductors. For instance, the Indian government has asked Foxconn to independently establish a semiconductor fabrication factory in India.
The official of Foxconn also said that "they reaffirm their commitment to Make in India plan" to support the Indian semiconductor industry. Whereas the official of Vedanta Group also suggested that they are still committed to supporting the Indian semiconductor industry.
Future of the Indian Semiconductor Industry from Here
Both Foxconn and Vedanta are looking ahead in future independently to support chip-making in the Indian semiconductor industry. Other than this Government of India is also supporting various plans related to semiconductor industry development and has prioritized its growth.