Hon Hai Precision Industry plans to build a chipmaking facility in India with a local partner to tap rising demand for chips and the government's support for such projects.
The home state of Prime Minister Narendra Modi will be the location of a new factory. According to the statement, the total investment in the project is set to reach 1.54 trillion rupee.
The partners have little experience running large chip operations, but they are betting on rising demand as everything from cars to home appliances contain an increasing number of chips. Modi's government unveiled a $10 billion incentive plan last year to entice display and Semiconductor fabricators to set up base in India. The country is the world's second largest maker of mobile devices.
The minister says that global chipmakers are assessing India plant locations.
About 100,000 people will be employed by the chip manufacturing plant that will be built by the companies within the next two years, according to the company. The Taiwanese company won't be involved in the display plant and Hon Hai will own 40% of the chip venture. Hon Hai will invest about $118 million in its 40% stake in the joint venture.
The venture is going to use 28-nanometer technology. There are challenges in attracting skilled workers to the western state of Gujarat, where the new venture is located.
Hon Hai is the largest contract manufacturer of electronics. A billionaire produces metals.
This MoU is an important step accelerating India’s semi-conductor manufacturing ambitions. The investment of Rs 1.54 lakh crore will create a significant impact to boost economy and jobs. This will also create a huge ecosystem for ancillary industries and help our MSMEs. https://t.co/nrRbfKoetd
— Narendra Modi (@narendramodi) September 13, 2022
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