A Bloomberg News report stated that the partners have applied for a production-linked incentives (PLI) scheme to secure support for the construction of the facility, which will manufacture 40-nanometer chips.
According to the sources reported by Bloomberg, the Indian Government has requested Foxconn for further information regarding its collaboration with STMicro.
Foxconn is also reportedly in negotiations with a few additional companies regarding chip manufacturing in the country.
The news comes after Foxconn and Indian multinational group Vedanta reportedly called off their agreement in July to form a joint venture (JV) that will manufacture semiconductors in India.
In December 2021, the Indian Government launched the Semicon India Programme and pledged a $10bn outlay for the development of semiconductors and display manufacturing ecosystem in the country.
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Under the Modified Semicon India Programme, companies, consortia or JVs can avail a fiscal incentive of 50% of the project cost to establish semiconductor fabrication plants in India.
The programme is part of the country’s efforts to minimise dependency on expensive imports and reliance upon Taiwan and China.