Vedanta: Government may deny funding for Vedanta-Foxconn chip venture, claims report – Times of India
The Indian government may have bad news for Anil Agarwal‘s chip venture. According to Bloomberg News, the authorities are likely to deny the venture between Vedanta and Taiwan’s Foxconn incentives to make 28-nanometer chips. The report quotes people familiar with the matter. According to the report, the venture has applied for such assistance, potentially worth billions of dollars, but hasn’t met the criteria set by the government.
In September 2022, Vedanta and Foxconn – formally called Hon Hai Precision Industry Co Ltd – announced that they would invest $19.5 billion to set up semiconductor and display production plants in the state of Gujarat, creating more than 100,000 jobs. “India’s own Silicon Valley is a step closer now,” Agarwal had said last year after the announcement. This will surely be a setback to the billionaire’s ambition to build India’s ‘own Silicon Valley.’ Hon Hai, widely known as Foxconn, is the world’s biggest assembler of iPhones.
No technology partner yet
The project is reportedly still in search of a technology partner and a manufacturing-grade technology license for the construction of 28nm chips. “Nine months after Agarwal announced the chip partnership to build India’s “own Silicon Valley,” the project is yet to find a technology partner or license manufacturing-grade technology for the 28nm chips it was seeking to build,” the report said quoting sources. At least one of these steps is said to be required for the venture to get government assistance.
Both Vedanta and Hon Hai have no previous significant experience in chipmaking. Vedanta has previously said that its partner Hon Hai had secured “production-grade, high-volume” 40nm technology and “development-grade” technology for relatively more sophisticated 28nm chips. It seems that it is likely not enough for the government to award the funding, as the venture had applied to actually produce 28nm chips, the report said quoting sources.
Vedanta can apply again
Both Vedanta and Hon Hai can apply again in case the government funding does not come through.
In September 2022, Vedanta and Foxconn – formally called Hon Hai Precision Industry Co Ltd – announced that they would invest $19.5 billion to set up semiconductor and display production plants in the state of Gujarat, creating more than 100,000 jobs. “India’s own Silicon Valley is a step closer now,” Agarwal had said last year after the announcement. This will surely be a setback to the billionaire’s ambition to build India’s ‘own Silicon Valley.’ Hon Hai, widely known as Foxconn, is the world’s biggest assembler of iPhones.
No technology partner yet
The project is reportedly still in search of a technology partner and a manufacturing-grade technology license for the construction of 28nm chips. “Nine months after Agarwal announced the chip partnership to build India’s “own Silicon Valley,” the project is yet to find a technology partner or license manufacturing-grade technology for the 28nm chips it was seeking to build,” the report said quoting sources. At least one of these steps is said to be required for the venture to get government assistance.
Both Vedanta and Hon Hai have no previous significant experience in chipmaking. Vedanta has previously said that its partner Hon Hai had secured “production-grade, high-volume” 40nm technology and “development-grade” technology for relatively more sophisticated 28nm chips. It seems that it is likely not enough for the government to award the funding, as the venture had applied to actually produce 28nm chips, the report said quoting sources.
Vedanta can apply again
Both Vedanta and Hon Hai can apply again in case the government funding does not come through.
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