Vedanta + Foxconn: will India Finally have its First Semiconductor Fab?

 

A recent announcement that the Vedanta Group, an Indian mining and minerals conglomerate is partnering with Foxconn, a giant Taiwanese electronics contract manufacturer, to build a fab in India seems to have confused the experts.

I wonder why the experts always appear to be stumped. Perhaps, because they are experts? If they would just try and understand Foxconn group's history, there'd be no more stumping.

In 2016 Foxconn acquired Sharp Electronics. Sharp has a .13µ 8"fab. In 2018, EE Times reported that Foxconn plans to invest $9Bn in a fab in Zhuhai, China. Foxconn was expected to draw on the Sharp fab to get this started.

“One of the Hon Hai group’s (aka Foxconn) goals when acquiring Sharp was to gain semiconductor technology,” Tokyo-based Mizuho Securities analyst Yasuo Nakane told EE Times.

In March of 2020, Foxconn warned of materials shortage. What does Vedanta excel in? You see my point?.

There's also this: "It set up a IC packaging and testing plant in Qingdao, China with state owned Rongkong group in July 2020 and it is estimated to begin production in 2021". Production seems to have started and will reach full testing capacity of 360K wafers annually in 2025.

In late 2020, Foxconn tried to acquire SiTerra, a Malaysian 8" fab, but that failed. But, In June 2021, it acquired DNex Technology, a Malaysian company that has a controlling interest in SiTerra.

Then in May of last year, it formed a joint venture called Xsemi with Yageo corporation to make power and analog semiconductors.

At the same time Foxconn said, it and Yageo are currently in discussions with "several global semiconductor companies" and will soon announce more collaboration plans in the semiconductor industry, without elaborating.

In August 2021, there was news that that it acquired a 6" automotive fab from Macronix International. However, this deal seems to have failed.

I don't think Foxconn getting into the semi game is a surprise at all - they have fabs and OSAT, they have experience doing business in India, and have sewn up a partner that can take care of the materials supply chain, and more importantly the market has turned in their favor - it's absolutely red hot right now.