Foxconn won’t help much in this regard.
The Rapidus joint venture was formed by a group of Japanese companies that potentially need advanced locally produced chips, but do not have the experience of producing them themselves, so the American corporation IBM will act as a technology donor for the project, retaining a worthy potential in the lithographic field, although it already had to say goodbye a few years ago.
An Indian initiative of this nature, promoted by local company Vedanta and Taiwanese contract electronics manufacturer Foxconn, has so far failed to find a worthy technology partner, according to Bloomberg citing its own sources. According to the plan of the Vedanta management, this Indian company, in collaboration with Foxconn, should build a plant in India worth about $19 billion, which would start contract production of chips for the needs of local customers.
Image Source: Bloomberg
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Negotiations with GlobalFoundries and STMicroelectronics, according to sources, were unsuccessful. The situation is aggravated by the fact that the Indian authorities are ready to provide only half of the amount of subsidies requested by the initiators of the project, considering the estimate to be too high. Representatives of Vedanta commented on these rumors by stating that the company has a strong technology partner that will lead the project to success. So far, another Indian initiative has not been developed, which would involve the construction of an enterprise for the production of chips in the country with the support of Tower Semiconductor. This Israeli company is currently awaiting antitrust approval to become part of Intel Corporation. Perhaps, new business owners will find building an enterprise in India simply uninteresting.
