India is putting all its weight behind efforts to manufacture semiconductors locally. At the forefront of this is the joint venture between Foxconn and Vedanta. Speaking to DIGITIMES Asia recently, David Reed, CEO of Vedanta-Foxconn Semiconductors explained that their focus will be on bulk planar CMOS in both the 28 and 40 nanometers, and will primarily deal with logic, as well as RAM and the standard components driven by logic.
"Critics might label our focus on the 40 and 28-nanometer technologies as 'legacy,' but I prefer to call it 'volume'," Reed said. "These are the volume nodes. The cost of a five-nanometer design, for instance, is prohibitive for many players, who prefer to stick with the volume nodes and adopt a chiplet approach. We will occupy this sweet spot in India amidst the global pivot to second sourcing and diversifying supply chains."
Significantly, Reed added that the JV has no intention of manufacturing any products that would compete with their customers. Their aim is to be the vanguard of the semiconductor industry in India.
"India already has a robust IP ecosystem with a wealth of talent and expertise in design, modeling, and system know-how," Reed continued. "However, the manufacturing engine is missing. By coupling the Foxconn joint venture with the existing Indian ecosystem, we can create a symbiotic relationship that will be beneficial for all parties involved."
Establishing a foundation in india
Building the semiconductor ecosystem is a marathon that demands tenacity and endurance. For India, the biggest concern has been the lack of basic infrastructure. For example, Reed pointed out that TSMC in Arizona has around a thousand suppliers for their three or five-nanometer factory. In comparison, Vedanta has between six and eight hundred, with roughly 150 being substantial contributors.
"Our factory will be built around the 40-nanometer technology due to its compatibility with the 28-nanometer technology," Reed said. "Depending on which flow you use, compatibility can range from 70 to 85 percent in terms of equipment, and 60 to 80 percent in terms of processes. We'll construct the entire infrastructure, culture, and execution around the 40-nanometer technology, and then add the 28-nanometer layer on top of it.
However, there are several new elements at play here, such as new chemicals and suppliers who've never sold into India before. There can be various challenges from the time the goods are unloaded at the docks until they're applied on the wafer in the factory. Therefore, the JV needs to establish a robust supplier infrastructure with a stable 40-nanometer technology.
Foxconn is providing high-volume 40-nanometer technology for industrial-grade applications. For the 28-nanometer technology, the company has an agreement with IMEC.
"As for the 28-nanometer technology, we have an agreement with IMEC, for which we're very grateful," Reed said. "However, they're an R&D facility, and sometimes things that work in R&D don't perform the same way in high volume. We have most of the know-how for the 28-nanometer technology, and we'll transfer the IMEC flow into the running 40-nanometer factory in parallel. We'll ramp up the 40-nanometer technology first, and then finish up with the 28-nanometer technology."
World class, high volume, automotive grade technology
Foxconn's broad expansion into different sectors, especially their interest in electric vehicles (EVs), is a notable strategic move and a significant potential area of collaboration with Vedanta. Foxconn's partnerships with the major automotive chip suppliers may also be significant to the outcome of this JV as India rapidly expands its EV ecosystem.
"In our roadmap, we certainly aim for automotive-grade technology, but that requires proven quality levels - from testing for intrinsic reliability at various temperatures to demonstrating that we've produced a sufficient number of units to provide a reliable sample size," Reed said. "When it comes to a car, there are numerous subsystems – battery control, body control, the instrument panel, and so on, each with different grades of automotive applications. We aim to walk before we run in this area. Foxconn, our partner, has shown us their roadmap. They intend to use chips from our factory, but the specifics, such as the design and timeline, isn't clear yet."
Growing with India's talent pool
To achieve economies of scale and optimize production costs while maintaining competitiveness, the joint venture between Foxconn and Vedanta aims to adopt the best-in-class manufacturing processes and bring onboard highly experienced personnel from the semiconductor industry.
"We're seeking people with hands-on foundry, operations, or factory experience," said Reed said. "Our goal is to hire the best-in-class people. We have a massive recruiting strategy underway, with hundreds of resumes coming in."
In short, this partnership holds the potential to revolutionize India's semiconductor landscape. The initiative aims to cultivate top-tier talent and establish a strong manufacturing base in India, creating synergy with the existing ecosystem. Moreover, with Foxconn's expansion into the electric vehicle sector, the venture also anticipates future applications in this growing market. This project could potentially position India as a significant player in global semiconductor manufacturing.
David Reed, CEO, Vedanta-Foxconn Semiconductors. Credit: Vedanta-Foxconn
