Key Apple iPhone manufacture Foxconn is in talks with chip-making giant Taiwan Semiconductor Manufacturing Co (TSMC) and Japan's TMH Group for a joint venture (JV) technology partnership to set up semiconductor fab units in India, reported The Economic Times (ET) on Friday, citing people aware of the matter.

As per the report, Foxconn is likely to finalise the details of the partnership to manufacture both advanced and legacy node chips soon. The company has been in discussions with TSMC and TMH Group for a considerable period. Taiwan's TSMC is one of the largest chip foundries globally, while TMH specialises in offering semiconductor-related solutions and the operation and maintenance of manufacturing equipment. TSMC's chips are widely utilised by numerous prominent semiconductor companies, including AMD, Apple, ARM, Broadcom, Marvell, MediaTek, and Nvidia.


The report comes days after Foxconn called off its joint venture with Vedanta Group. 

Taiwan's Foxconn pulled out of a $20 billion semiconductor-making venture with Vedanta Ltd earlier this week after being unable to secure a technology partner. The government had mandated a technology partner for the JV to avail financial incentives under India's ambitions India Semiconductor Mission (ISM) as both Foxconn and Vedanta were new to the chip manufacturing industry.


During the joint venture period, Foxconn was also engaged in discussions with STMicro from Europe and GlobalFoundries from the United States for a potential technological partnership. According to the ET report, there is still a possibility for Foxconn to finalise a deal with either or both of these companies.


Also Read: Gujarat Exploring Semiconductor Plant With Foxconn, Days After Vedanta JV Falls Apart


Hon Hai Technology Group, also known as Foxconn, had announced that it intends to apply for incentives under the government's semiconductor production plan. Vedanta Ltd on Wednesday also said it has lined up partners and will begin a foray into chip-making this year.


It was earlier reported that the Gujarat government is holding dialogue with the Taiwanese Apple supplier over a semiconductor facility. A top state government official told Reuters that they are in touch with multiple prospective investors, including Foxconn.


In December 2021, the Center introduced a semiconductor incentive program with a total value of $10 billion. The program aimed to encourage companies to establish chip manufacturing units within the country by offering a 50 per cent subsidy on capital expenditure.


To attract and facilitate these projects under the ISM, various states also provide additional subsidies ranging from 15 per cent to 25 per cent.