PM Modi Meets w/Foxconn Chief Amid Efforts To Boost Semiconductor Base

The office of Prime Minister Narendra Modi has confirmed that the Indian leader met with Young Liu, chairman of semiconductor giant Foxconn. The PMO stated that "The PM welcomed Foxconn's plans to expand semiconductor and chip manufacturing capacity in India." The meeting came as part of the Semicon India 2023 conference in Gandhinagar. The meeting comes just weeks after Foxconn pulled its support from a USD19.5bn deal in conjunction with mining giant Vedanta to build a chip-making plant in Gujarat. The gov't sought to brush over the incident, but Foxconn stated that the project "was not moving fast enough".

• Local media reports that "...technology firms will be given 50 per cent financial assistance to set up semiconductor manufacturing facilities in India, [Modi] said, adding, “We are continuously carrying out policy reforms to accelerate the growth of the country's semiconductor sector”.
• At the same conference Minister of State for Entrepreneurship, Skill Development, Electronics & Technology Rajeev Chandrasekhar states that the gov't is planning an India Semiconductor Research Centre to advance R&D work in the sector.
• While bureaucratic hurdles and a restrictive business environment could continue to stifle investment, India's chip sector could see a boost due to efforts by the US and EU to de-risk their supply chains. While both have significant spending packages in place to support their domestic chip industries, India could be seen as a viable lower-cost alternative with fewer risks attached than sourcing chips from elsewhere in Asia.