According to insiders, Vedanta-Foxconn are almost ready to announce STMicroelectronics as their technical partner for their prospective semiconductor chip manufacturing facility in India.
The joint venture (JV) that was launched in February of last year would include Foxconn as its principal partner. One of those listed above claimed that “the government is positive on Foxconn, which is committing substantial investments in India.”
As part of a $10 billion program to support local semiconductor production, the Vedanta-Foxconn cooperation is one of five bidders seeking government subsidies.
One of the requirements for project approval and the granting of incentives is partnering with a manufacturer of license-grade semiconductor technology that has the required expertise in chip fabrication. Along with additional 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.
The Center has already received five proposals for the construction of semiconductor production facilities in addition to the Foxconn-Vedanta plan. These companies include Singapore-based IGSS Ventures and Israel’s Next Orbit Ventures, the latter of which has collaborated with Tower Semiconductor (Tower was recently bought by Intel, although the deal is still pending regulatory approvals).
Vedanta “will remain a partner, but will not be the primary partner,” a source familiar with government policy said in response to recent rumors regarding the mine-to-metal conglomerate’s ongoing participation in the proposed project. This is because Vedanta lacks past expertise in chip manufacturing.
The source claimed that Vedanta’s participation in the business as a junior partner—but not an operating partner—was acceptable to the government. “Foxconn can do it on their own (manufacture chips in India) if the Foxconn-Vedanta deal doesn’t work out.”
According to the source, Foxconn, one of the biggest global manufacturers of electronics, is “dedicated to India” and would invest close to $70-80 billion in the country’s chip manufacturing industry.
According to a Vedanta spokeswoman, Vedanta-Foxconna has signed a binding agreement and are completely committed to working together to complete the project. “The administration is anxious for the initiative to move forward with the greatest tech partners. And we support the government in this “In response to questions from ET through email, a Vedanta spokesman stated.
The intricate project necessitates cooperation from a wide variety of stakeholders, and “we are in negotiations with multiple possible technological partners working with Foxconn to make this project a big success not just for us but for the nation,” the individual stated.
But the business made no mention of having talks with STMicroelectronics.