Govt Enforces ‘Melt and Pour’ Rule for All Steel in Public Projects Nippon Steel expected to finalize U.S. Steel acquisition at $55 per share NMDC Limited reports a 38% drop in Q4 FY24 consolidated net profit RINL to Raise $23 Million Through Land Sales Amid Crisis
Foxconn, a Taiwan-based chip manufacturer, has announced on Tuesday that ₹1,200 crore will be spent on a facility by its Indian subsidiary. The corporation owns the property where the new facility will be built.
In an exchange filing, which has been reviewed by a media source, the company said that the purpose of the investment was 'operational needs.'
In November, the media house had reported that Foxconn would invest more than $1.5 billion in an Indian construction project to fulfil the Apple supplier's "operational needs".
The investment was made through a Foxconn subsidiary - Hon Hai Technology India Mega Development.
The Taiwanese contract manufacturer has been rapidly scaling its operations in India. In fact, only last month, the company announced that it would invest $37.2 million and would join hands with HCL Group to establish a chip packaging and testing facility in India. The announcement came after its joint venture with the Vedanta Group fell through.
Impact on Indian chip manufacturing
India's heavy reliance on semiconductor imports, constituting 95% from countries like China, Taiwan, South Korea, and Singapore, became evident during disruptions like the pandemic. The microchip shortage, triggered by a surge in demand due to the digital shift caused by COVID-19, impacted various industries, leading to supply chain disruptions and losses, as seen in the case of Maruti Suzuki India. The government's proactive approach involves significant investments in semiconductor research and development, manufacturing incentives, and partnerships with international consortia.
While establishing semiconductor fabs in India poses challenges due to their capital-intensive nature, the government's commitment to providing fiscal support and covering up to 50% of project costs encourages investments. Strategic locations in states like Karnataka, Tamil Nadu, Telangana, and Gujarat, with existing infrastructure and semiconductor ecosystems, have been earmarked for chip fabrication units. The goal is not only to meet current demands but to prepare for the future, insulating India from global supply shocks and achieving technological self-reliance.
India's collaborative approach with international consortia, along with substantial fiscal support, indicates its determination to create a robust semiconductor manufacturing ecosystem. The government's focus on talent development, training engineers and skilled workers, and initiatives like "Chips to Startup" underscore the long-term vision. The comprehensive approach aligns with India's broader economic objectives, including the Make in India and Atmanirbhar Bharat initiatives, and contributes to geopolitical strategies by reducing reliance on China and securing critical technology control.
Hence, Foxconn's investment announcement aligns with India's overarching vision of becoming a semiconductor superpower. India's journey towards self-sufficiency in semiconductor production is not just a financial transaction but a strategic bet on technological empowerment, economic growth, and environmental sustainability. The challenges ahead are accompanied by significant opportunities, positioning India as a reliable and self-sufficient destination in semiconductor manufacturing, contributing to both economic growth and strategic autonomy.
Also Read : JSPL wins key Odisha coal block in competitive government auction India's LMEL sees 27% decline in net profit in Q4 FY 2024-25
India plans to protest the European Union's proposed carbon tax on imports of steel, iron ore and ce...
Business 08-Feb-2024
India can aim to become a $7-trillion economy by 2030, according to a Finance Ministry report releas...
Announcement 29-Jan-2024
Tata Steel anticipates challenges in its European operations to impact its net profit for the third...
Large Corporate 24-Jan-2024
Indian government run Manganese Miner (MOIL) wants to expand its mining footprint outside its recent...
Notification 26-Apr-2024
In an effort to fortify its circular economy and strengthen critical supply chains, the European Uni...
Europe 25-Jun-2025
India imposes 12% safeguard duty to protect domestic steelmakers. Metal stocks rallied up to 3% fol...
Business 22-Apr-2025