Following its withdrawal from a joint venture with the Vedanta company to build a semiconductor plant in Gujarat, Taiwanese firm Foxconn is reportedly considering chip production in the nation on its own.

A knowledgeable source claims that Foxconn intends to seek to the government for permission to build two fab factories on its own.

A compound semiconductor facility based on gallium nitride, one of the facilities the Taiwanese company is constructing, will produce chips that are widely utilised in power electronics, electric vehicles (two-wheelers), and communications equipment. One of the individuals involved in the talks stated that the other fab will be built on silicon.

It is learnt that Foxconn is looking to make a range of chips—14, 28, and 40 nanometre. While the details have not been finalised, Foxconn could also bring in a Taiwanese fab company as a technology or JV partner.

Meanwhile, in an unusual step, Foxconn issued a statement on Tuesday, attempting to clarify why it walked out of the Vedanta JV and its next move. Foxconn’s statement, which hinted at the hurdles without getting into details, said: “Both parties mutually agreed to part ways. This is not a negative.