Semiconductor Deal: After Vedanta, now Taiwanese company can also leave HCL! - Newztezz Online

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Wednesday, March 20, 2024

Semiconductor Deal: After Vedanta, now Taiwanese company can also leave HCL!

The path for Taiwanese semiconductor company Foxconn to set up a factory in India does not seem easy. First the company's deal with Vedanta Group broke down and now clouds of crisis are looming over the deal with HCL.

India wants to become a world leader in the world of semiconductors by becoming an alternative to China. But this path is not so easy. Taiwanese company Foxconn was earlier in talks with Anil Agarwal's Vedanta Group to set up its factory in India, however, that deal broke down and now the company is working on a joint venture project with Shiv Nadar's HCL, but in this There also appears to be an obstacle.

In fact, HCL and Taiwan's Foxconn Group have planned to set up a semiconductor chip assembly unit in a joint venture. But the government is not satisfied with his proposal. The government has now asked both the companies to share more details of their projects. At present, an application related to the joint venture project of both is lying with the government. Both have filed this application to get incentives under 'Semiconductor Mission'.

India has prepared Semiconductor Mission to become self-reliant in semiconductors and increase its exports from the country. This mission is worth 10 billion dollars.

Government needs this information

According to an ET news, the government has asked the companies on which technology their 'Outsourced Assembly and Testing' (OSAT) factory will work. Meaning, which technology will the technology partner transfer to this company? HCL and Foxconn need a technology partner for this factory. The government has also sought information related to the factory's output from the company.

HCL and Foxconn had announced their joint venture in January this year. Under this, both the companies are going to invest 10 to 15 crore dollars in India.

India's semiconductor plan

Recently, the Central Government has approved 3 semiconductor projects, in which CG Power will set up a semiconductor plant in Gujarat in collaboration with Renesas Electronics Corp of Japan and Stars Microelectronics of Thailand. While Tata Semiconductor Assembly and Test Private Limited will set up a plant in Morigaon, Assam, and Tata Electronics Private will set up a plant in Gujarat in collaboration with Taiwan's Powerchip Semiconductor Manufacturing Corp.

The government estimates that a total investment of Rs 1.26 lakh crore will come in these three semiconductor units. Tata Electronics Pvt Ltd will invest around Rs 91,000 crore in Dholera plant in Gujarat, Tata Semiconductor Assembly and Test Pvt Ltd will invest Rs 27,000 crore in Assam, while CG Power will invest Rs 7,600 crore in Sanand, Gujarat.

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