Vedanta-Foxconn chip venture to hit a major hurdle, government set to deny funding
Vedanta-Foxconn’s venture to build a semiconductor and display fabrication facility in Dholera, Gujarat going to hit a major hurdle soon. The government of India is set to deny funding to the Vedanta-led chip venture, as per a report by Bloomberg News.
The government is likely to convey the venture between Vedanta Resources Ltd. and Taiwan’s Hon Hai Precision Industry Co. that it will not get incentives worth billion to make 28-nanometer chips, the report said citing people familiar with the matter.
The venture has failed to meet the criteria set by the government as it is still searching for a technology partner or license manufacturing-grade technology for the 28nm chips that it intends to fabricate. The venture needs to come up with at least one of them to get government assistance.
Both the partners of the venture- Vedanta and Hon Hai have no prior experience in chip making and they are yet to find a suitable partner.
The government of India launched the India Semiconductor Mission (ISM) in December 2021 with an outlay of Rs 76,000 crore to support the development of the semiconductor and display industry by offering subsidies to selected chip makers.
Anil Agrawal led Vedanta earlier said that its partner Foxconn has secured “production-grade, high-volume” 40nm technology and “development-grade” technology for relatively more sophisticated 28nm chips but that is not enough for the government to grant the venture assistance as it has originally applied to produce 28nm chips.
The venture can apply again for assistance, but rejection would mean further delay in the project. In addition to this, the government may ask Vedanta to submit an application for assistance to make 40nm chips. However, it will be considered only after the government reopens the process for assistance.
Foxconn investment in Telangana
Foxconn will spend $500 million to build factories in Telangana, a state in south India. The state’s minister K.T. Rama Rao tweeted that this will create 25,000 jobs in the first phase.
A report by Reuters in March said that Foxconn had got an order from Apple to make AirPods and planned to make them in India.
Apple has been moving production away from China, where COVID restrictions affected the making of new iPhones and other devices. The tech company also wants to avoid problems for its business because of the conflict between Beijing and Washington.
The Karnataka government approved a $968 million investment by Foxconn in the state in late March.
The post Vedanta-Foxconn chip venture to hit a major hurdle, government set to deny funding appeared first on Techlusive.
Vedanta-Foxconn’s venture to build a semiconductor and display fabrication facility in Dholera, Gujarat going to hit a major hurdle soon. The government of India is set to deny funding to the Vedanta-led chip venture, as per a report by Bloomberg News.
The government is likely to convey the venture between Vedanta Resources Ltd. and Taiwan’s Hon Hai Precision Industry Co. that it will not get incentives worth billion to make 28-nanometer chips, the report said citing people familiar with the matter.
The venture has failed to meet the criteria set by the government as it is still searching for a technology partner or license manufacturing-grade technology for the 28nm chips that it intends to fabricate. The venture needs to come up with at least one of them to get government assistance.
Both the partners of the venture- Vedanta and Hon Hai have no prior experience in chip making and they are yet to find a suitable partner.
The government of India launched the India Semiconductor Mission (ISM) in December 2021 with an outlay of Rs 76,000 crore to support the development of the semiconductor and display industry by offering subsidies to selected chip makers.
Anil Agrawal led Vedanta earlier said that its partner Foxconn has secured “production-grade, high-volume” 40nm technology and “development-grade” technology for relatively more sophisticated 28nm chips but that is not enough for the government to grant the venture assistance as it has originally applied to produce 28nm chips.
The venture can apply again for assistance, but rejection would mean further delay in the project. In addition to this, the government may ask Vedanta to submit an application for assistance to make 40nm chips. However, it will be considered only after the government reopens the process for assistance.
Foxconn investment in Telangana
Foxconn will spend $500 million to build factories in Telangana, a state in south India. The state’s minister K.T. Rama Rao tweeted that this will create 25,000 jobs in the first phase.
A report by Reuters in March said that Foxconn had got an order from Apple to make AirPods and planned to make them in India.
Apple has been moving production away from China, where COVID restrictions affected the making of new iPhones and other devices. The tech company also wants to avoid problems for its business because of the conflict between Beijing and Washington.
The Karnataka government approved a $968 million investment by Foxconn in the state in late March.
The post Vedanta-Foxconn chip venture to hit a major hurdle, government set to deny funding appeared first on Techlusive.
