Bharat can build ecosystem faster than China and become semiconductor manufacturing hub - Foxconn chairman.

[INDIAPOSITIVE]

https://twitter.com/x/status/1699825008934355084

https://twitter.com/x/status/1699762178524680278

https://twitter.com/x/status/1699790174245491086

https://twitter.com/x/status/1699819398641717594

 

[MajesticPug]

Good luck on that. His host loved the picture he painted and he only had to pay for his own dinner bill.

 

[nahtanbob]

Does India want manufacturing jobs ?

 

[khail007]

After such a GREEN SIGNAL, what India is waiting for?

 

[TriptiD]

Does India want manufacturing jobs ?

Of course. There are over a billion people in India. Not everyone can write code for Google, Microsoft or Facebook.

 

[Puffin]

After such a GREEN SIGNAL, what India is waiting for?

Patience , So much is taking place quickly, the PLI scheme will have to sift through the various proposals to back the most viable avenue of alternatives. These are hefty front end loaded investments, and all parties need to keep a close eye on details.

 

[nahtanbob]

Of course. There are over a billion people in India. Not everyone can write code for Google, Microsoft or Facebook.

Half of those live in the interior areas far away from ocean. I am not sure if manufacturing will ever take off in those areas

 

[TriptiD]

Half of those live in the interior areas far away from ocean. I am not sure if manufacturing will ever take off in those areas

You would be surprised. There are some manufacturing clusters in North India, though not in what anyone would classify as interior areas - for example, in the industrial suburbs of New Delhi. In any case, if you build a factory and offer jobs, the workers will come. The labour force in India is quite geologically mobile, even for low-paying service jobs.

 

[Puffin]

Half of those live in the interior areas far away from ocean. I am not sure if manufacturing will ever take off in those areas

Indeed just as manufacturing does not exist in the hinterlands of interior USA. Those uncivilised places must truly be terrifying to behold

 

[StraightEdge]

Is anyone wondering that we are reaching record high inventory and over capacity. On top of that new plants will come up in US around 2025, then in EU and many more in China. By some estimates, there is close to $500 billion being spent on building new plants in next few years. There is absolutely no way we will need this many chips in next decade or so. Even right now, the chip inventory is highest in recent years.

Is chip shortage over? Korea stockpiles swell to a record as demand sputters

Activity in South Koreas chips industry is an important gauge of global demand for electronics, as the country houses two of the worlds largest semiconductor companies, Samsung Electronics Co. and SK Hynix Inc.

economictimes.indiatimes.com

Korea Chip Stockpiles Swell to a Record as Demand Sputters

South Korea’s semiconductor inventory surged by the most in seven years, underscoring ongoing weak demand for chips despite the global boom in AI development.

www.bloomberg.com

South Korea’s semiconductor inventory hits 26-year high

Two of the largest memory chipmakers – Samsung Electronics and SK hynix – have seen their inventory surge around the same time.

asianews.network

 

[StraightEdge]

Just as I mentioned earlier, building chip factories now will be extremely tough business. Too much inventory, huge capex. Already signs are that the sector had too much of overcapacity.

TSMC tells vendors to delay chip equipment deliveries, sources say

Taiwan's TSMC has told its major suppliers to delay the delivery of high-end chipmaking equipment, as the world's top contract chipmaker grows increasingly nervous about customer demand, two sources familiar with the matter said.

www.reuters.com

Report Says TSMC Concerned About Chip Demand

The company has told large chip-equipment suppliers to delay some deliveries, according to a new report.

www.barrons.com

 

[d00od00o]

https://twitter.com/x/status/1699825008934355084

https://twitter.com/x/status/1699762178524680278

https://twitter.com/x/status/1699790174245491086

https://twitter.com/x/status/1699819398641717594

Foxconn pulls out of $19 billion chipmaking project in India​

Michelle Toh
Hong Kong CNN — none
Foxconn says it is exiting an ambitious project to help build one of India’s first chip factories.

The world’s largest contract electronics maker will “no longer move forward” with its $19.4 billion joint venture with Vedanta (VEDL), an Indian metals and energy conglomerate, in Asia’s third largest economy, it said Monday.

The news was seen as a blow to the Indian government’s plans to turn the country into a tech manufacturing powerhouse, even as officials have sought to counter that view.

In a statement to CNN, Foxconn, a Taiwanese tech giant best known for being one of Apple (AAPL)’s top suppliers, said the decision was based on “mutual agreement” and allowed the company “to explore more diverse development opportunities.”

The joint venture will now be wholly owned by Vedanta.

In a followup statement Tuesday, Foxconn reaffirmed its commitment to invest in Indian chipmaking, saying it will apply for a government program that subsidizes the cost of setting up semiconductor or electronic display production facilities in the country.

“Building fabs from scratch in a new geography is a challenge, but Foxconn is committed to invest in India,” the company said, referring to fabrication plants, the technical term for semiconductor factories.

“There was recognition from both sides that the project was not moving fast enough, there were challenging gaps we were not able to smoothly overcome, as well as external issues unrelated to the project,” it said.

In a statement, Vedanta said it had already lined up other partners to set up India’s first semiconductor production plant.

The conglomerate has obtained a license from a chipmaker to produce 40-nanometer chips, and will soon obtain another license for 28-nanometer chips, it added.

“India remains pivotal in repositioning global semiconductor supply chains,” a company spokesperson said.

The semiconductor industry is constantly trying to make microchips smaller and faster. For comparison, IBM announced in 2021 it had created a 2-nanometer chip: the smallest, most powerful microchip yet developed.

Endorsed by Modi​

The deal was announced in February 2022 to much fanfare.

An investment figure for the facility was not provided, but Indian Prime Minister Narendra Modi tweeted in September that the total investment would amount to 1.54 trillion rupees, which was then equivalent to $19.4 billion.

Since announcing the joint venture, Foxconn CEO Young Liu has been looking for other opportunities in India, having traveled there in February to seek new collaborators.

The company, which already has factories in the Indian states of Andhra Pradesh and Tamil Nadu, is one of many global tech firms looking for opportunities in the country, particularly as multinationals seek to diversify their supply chains beyond China.

On Monday, India’s electronics and information technology minister Ashwini Vaishnaw told Indian news outlet and CNN affiliate News18 that both Vedanta and Foxconn are “completely committed to India’s semiconductor mission.”

Rajeev Chandrasekhar, the country’s minister of state for electronics and IT, also tweeted that the news “changes nothing about” India’s semiconductor manufacturing goals, adding that the decision would still allow “both companies to independently pursue their strategies” in India.

The project had been hailed as a milestone in India’s campaign to attract more investment in manufacturing, a sector sorely needed to help ease unemployment.

Prime Minister Modi had framed the project as a significant boost for the economy and jobs.

Foxconn shares rose 1.3% in Taipei on Tuesday following its announcement, while Vedanta’s shares fell 1.4% in Mumbai.

Other prominent tech companies have moved to expand production in India recently.

Last month, US chipmaker Micron (MICR) announced a new factory in the western state of Gujarat, calling it the country’s first semiconductor assembly and test manufacturing facility.

The venture will see Micron invest up to $825 million, and create “up to 5,000 new direct Micron jobs and 15,000 community jobs over the next several years,” according to the company.

— CNN’s Juliana Liu and Dhruv Tikekar contributed to this report.

 

[TriptiD]

Foxconn pulls out of $19 billion chipmaking project in India​

Michelle Toh
Hong Kong CNN — none
Foxconn says it is exiting an ambitious project to help build one of India’s first chip factories.

The world’s largest contract electronics maker will “no longer move forward” with its $19.4 billion joint venture with Vedanta (VEDL), an Indian metals and energy conglomerate, in Asia’s third largest economy, it said Monday.

The news was seen as a blow to the Indian government’s plans to turn the country into a tech manufacturing powerhouse, even as officials have sought to counter that view.

In a statement to CNN, Foxconn, a Taiwanese tech giant best known for being one of Apple (AAPL)’s top suppliers, said the decision was based on “mutual agreement” and allowed the company “to explore more diverse development opportunities.”

The joint venture will now be wholly owned by Vedanta.

In a followup statement Tuesday, Foxconn reaffirmed its commitment to invest in Indian chipmaking, saying it will apply for a government program that subsidizes the cost of setting up semiconductor or electronic display production facilities in the country.

“Building fabs from scratch in a new geography is a challenge, but Foxconn is committed to invest in India,” the company said, referring to fabrication plants, the technical term for semiconductor factories.

“There was recognition from both sides that the project was not moving fast enough, there were challenging gaps we were not able to smoothly overcome, as well as external issues unrelated to the project,” it said.

In a statement, Vedanta said it had already lined up other partners to set up India’s first semiconductor production plant.

The conglomerate has obtained a license from a chipmaker to produce 40-nanometer chips, and will soon obtain another license for 28-nanometer chips, it added.

“India remains pivotal in repositioning global semiconductor supply chains,” a company spokesperson said.

The semiconductor industry is constantly trying to make microchips smaller and faster. For comparison, IBM announced in 2021 it had created a 2-nanometer chip: the smallest, most powerful microchip yet developed.

Endorsed by Modi​

The deal was announced in February 2022 to much fanfare.

An investment figure for the facility was not provided, but Indian Prime Minister Narendra Modi tweeted in September that the total investment would amount to 1.54 trillion rupees, which was then equivalent to $19.4 billion.

Since announcing the joint venture, Foxconn CEO Young Liu has been looking for other opportunities in India, having traveled there in February to seek new collaborators.

The company, which already has factories in the Indian states of Andhra Pradesh and Tamil Nadu, is one of many global tech firms looking for opportunities in the country, particularly as multinationals seek to diversify their supply chains beyond China.

On Monday, India’s electronics and information technology minister Ashwini Vaishnaw told Indian news outlet and CNN affiliate News18 that both Vedanta and Foxconn are “completely committed to India’s semiconductor mission.”

Rajeev Chandrasekhar, the country’s minister of state for electronics and IT, also tweeted that the news “changes nothing about” India’s semiconductor manufacturing goals, adding that the decision would still allow “both companies to independently pursue their strategies” in India.

The project had been hailed as a milestone in India’s campaign to attract more investment in manufacturing, a sector sorely needed to help ease unemployment.

Prime Minister Modi had framed the project as a significant boost for the economy and jobs.

Foxconn shares rose 1.3% in Taipei on Tuesday following its announcement, while Vedanta’s shares fell 1.4% in Mumbai.

Other prominent tech companies have moved to expand production in India recently.

Last month, US chipmaker Micron (MICR) announced a new factory in the western state of Gujarat, calling it the country’s first semiconductor assembly and test manufacturing facility.

The venture will see Micron invest up to $825 million, and create “up to 5,000 new direct Micron jobs and 15,000 community jobs over the next several years,” according to the company.

— CNN’s Juliana Liu and Dhruv Tikekar contributed to this report.

This is old news and a result of bad fit between the two companies. Both Vedanta and Foxconn are still looking to make investments with new partners. For Vedanta, it will probably be ST Microelectronics.

 

[Puffin]

Just as I mentioned earlier, building chip factories now will be extremely tough business. Too much inventory, huge capex. Already signs are that the sector had too much of overcapacity.

It will not matter to countries with CAPTIVE large demand as those countries will ensure they charge a large import tax thus ensuring their own fab remains in business.
India's internal demand for chips will continue to rise exponentially and a import tax on chips will ensure it will be profitable to manufacture in India

 

[mmr]

if pigs can fly lol