Vedanta Group, a conglomerate focused on natural resources, and Taiwanese electronics contract manufacturer Foxconn have independently submitted applications to the Indian government to establish semiconductor fabrication units, according to sources familiar with the matter, as reported by The Economic Times.
Both companies have furnished particulars about their proposed technology partners and the funding earmarked for the chip fabrication units they plan to establish. Government officials are scrutinising these proposals and actively discussing with the companies to address any outstanding matters.
Earlier the same day, Bloomberg reported that Foxconn had partnered with the European firm STMicroelectronics NV to bid to construct a semiconductor factory in India. According to the report, The collaboration intends to establish a 40nm chip manufacturing facility.
At the time of reporting, Vedanta and Foxconn had not responded to email inquiries seeking further details about the proposals they had submitted to the government.
Previously, the Vedanta Group and Foxconn had announced a joint venture, Vedanta Foxconn Semiconductors Ltd, to establish a chip fabrication unit in Gujarat. Approximately a year after the partnership was unveiled, Foxconn withdrew from the joint venture but affirmed its commitment to establishing a chip fabrication facility in India.
The Foxconn-Vedanta joint venture, which was initially disclosed in February 2022, was one of the initial participants in the Indian government’s strategically important India Semiconductor Mission.
In June of this year, The Economic Times had reported that the partnership between the two companies faced challenges, with Foxconn expressing concerns about the financial viability of the Vedanta Group. In response to inquiries from ET, a Vedanta spokesperson voiced confidence in the company’s ability to fulfil all its debt obligations.
In July, Foxconn communicated to the Ministry of Electronics and Information Technology its intention to establish at least 4-5 chip production lines in India, as reported by ET, citing sources. Foxconn also informed the IT ministry of signing at least two memoranda of understanding with different partners at that point, as per ET’s report.
