Apple supplier Foxconns failed India chip venture shows how tough it is for new players
Summary
But in last couple of years, the Taiwanese firm has made a push into semiconductors, betting that the rise of technologies like artificial intelligence will boost demand for these chips. But Foxconns semiconductor foray has had a tough start, highlighting the difficulty for new players to enter a market dominated by established firms with huge experience and a highly intricate supply chain. "Established players such as TSMC , Samsung or Micron count with several decades of R&D (research and development), process engineering and trillions of dollars in investment to reach their current capabilities." The biggest ramp-up in effort came last year when Foxconn agreed with Indian metals-to-oil conglomerate Vedanta to set up a semiconductor and display production plant in India as part of a $19.5 billion joint venture. Deadlocked talks with European chipmaker STMicroelectronics, which was the technology partner for the project, was one major reason for the ventures failure, Reuters reported this month.
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