According to a report, Foxconn is currently in discussions with Taiwan Semiconductor Manufacturing Co (TSMC) and Japans TMH Group to form a joint venture and technology partnership in India with the aim of establishing semiconductor fabrication units. This development follows the recent cancellation of Foxconns chip joint venture with the Vedanta Group.

TSMC is recognised as one of the leading chip manufacturers globally while TMH Group specialises in providing semiconductor solutions as well as managing and maintaining manufacturing equipment. The report states that Foxconn has been engaged in negotiations with both companies for some time and is expected to announce the partnership details soon. The collaboration will likely involve the production of advanced and legacy chips within India.

The previous joint venture between Foxconn and Vedanta was terminated due to their inability to secure a technology partner as advised by the Indian government. Foxconn had also been discussing potential technology partnerships with STMicro from Europe and GlobalFoundries from the United States. It is possible that Foxconn may still finalise agreements with these two companies. Hon Hai Technology Group, commonly known as Foxconn and the Vedanta Group led by Anil Agarwal had initially announced their joint venture in February 2022 to manufacture chips and display panels in India.

This move positioned them as early participants in the India Semiconductor Mission (ISM), a strategic initiative by the Indian government to foster domestic capabilities in the semiconductor industry. In December 2021, the government launched a $10 billion semiconductor incentive programme which offered a 50 per cent subsidy on capital expenditure for companies setting up chip manufacturing units in India. To attract such projects under the ISM individual states had also agreed to provide additional subsidies ranging from 15 per cent to 25 per cent.