Foxconn & STMicro To Tie Up For Semiconductor Plant

Foxconn Technology Group, a Taiwanese multinational electronics contract manufacturer, has recently planned to tie up with STMicroelectronics NV, which is a Franco-Italian semiconductor manufacturer. Basically, this partnership is planned to develop a semiconductor plant in India. The two companies are keen to expand their business presence in the South Asian country and hope to receive state support for their big and ambitious project. Moreover, many sources close to the matter indicate that the organisations are looking to secure funding to develop a 40-nanometer chip plant in India, which will produce chips used in different machines such as cameras, cars, and printers. 

Additionally, Foxconn, a well-known electronic manufacturer, had a  partnership with Vedanta Resources Ltd, which is run by  Anil Agarwal. This partnership has been done to venture into the semiconductor industry. However, due to some reasons, the collaboration failed, and there has been no significant progress, due to which Foxconn planned to start a new partnership. However, Foxconn planned to partner with STMicro, the top-notch chip industry. This partnership is mainly planned to establish a strong foothold in the semiconductor market. 

Furthermore, the decision was made when the Indian government opened its doors to semiconductor companies worldwide, encouraging them to invest in manufacturing within the country to lessen their dependence on China. The Centre’s Production-linked Incentive (PLI) Scheme, which boasts a substantial INR 76,000 Cr investment, is a strategic move to lure investors and companies to establish themselves in India by providing incentives for manufacturing semiconductors and display fabs. This scheme aims to create a more self-reliant India in terms of technology, economic growth, and development.

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