Foxconn and Vedanta are almost ready to welcome European chipmaker STMicroelectronics as a technical partner in their projected semiconductor chip manufacturing facility in India. In the joint venture (JV) that was announced in February, Foxconn will serve as the primary partner. According to the person mentioned above, "the government is positive on Foxconn, which is committing big investments in India."
One of the five bidders for government incentives under a $10 billion package to support local semiconductor manufacturing announced in December 2021 is the Vedanta-Foxconn cooperation.
One of the requirements for project approval and the granting of incentives is partnering with a manufacturer of license-grade semiconductor technology who has the required expertise in chip fabrication. Along with other incentives, the government has pledged to paying 50% of the project's costs. By the middle of March, the final
project clearances are anticipated, according to sources. Lead partner: To date, the Center has received five proposals for the establishment of semiconductor fabrication units in addition to the Foxconn-Vedanta proposal. These companies include Singapore-based IGSS Ventures and Israel's Tower Semiconductor-partnered Next Orbit Ventures.
Establishing display fabs is what Rajesh Exports and Vedanta-Foxconn are proposing. Vedanta "will remain a partner, but will not be the lead partner," a person familiar with the government's thinking on the topic said in response to recent rumours concerning Vedanta's continued participation in the proposed project. This is because Vedanta lacks past experience in chip manufacture.
The government is fine with Vedanta being a junior partner, but not an operating partner, in the business. "Foxconn can handle it on their own if the Vedanta-Foxconn deal doesn't work out." According to the source, Foxconn, one of the biggest manufacturers of electronics in the world, is "dedicated to India" and would devote up to $70-80 billion to chip production.
According to a Vedanta spokeswoman, Foxconn and Vedanta have signed a binding contract and are completely committed to working together to complete the project. "The initiative must move forward with the best technical partners, according to the government. Additionally, we concur with the government on this "a Vedanta representative stated.
A wide range of stakeholders must work together on the difficult project, and "we are in talks with multiple possible technological partners working with Foxconn to make this project a big success not just for us but for the nation," the source added. The business did not confirm or deny having talks with STMicroelectronics, though. STMicroelectronics and Foxconn did not react to questions on the situation.
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