Vedanta-Foxconn JV seeks chip unit incentives again
POWER & RENEWABLE ENERGY

Vedanta-Foxconn JV seeks chip unit incentives again

The Vedanta-Foxconn joint venture (JV) announced that they had re-submitted an application to establish an electronic chip manufacturing plant in India. They stated in a statement, "We have submitted the application as per the revised guidelines. We are committed to constructing a world-class fab in India."

According to the joint venture, their previous application did not meet the requirements to receive financial incentives because they were unable to find a partner with the necessary technical expertise to produce advanced semiconductor chips. In their new application for chip production under the government's $10 billion production-linked incentive (PLI) scheme, the company has requested government incentives in the 40-nanometer (nm) chip category instead of the previously proposed 28-nm.

The announcement follows a media report the day before, which stated that Foxconn was seeking a new partner and stepping back from the one-year-old joint venture with the Anil Agarwal-led Vedanta group. The report mentioned that government officials had advised Foxconn to find a different partner due to concerns about Vedanta's financial stability.

Initially, the company had planned to establish a plant in Dholera, Gujarat, with an investment of approximately Rs 1.5 trillion, with revenue expected to begin by 2027.

In September 2022, the Ministry of Electronics and Information Technology revised the semiconductor PLI scheme, offering a uniform 50% incentive of the project costs for all semiconductor nodes. Last month, the ministry invited new proposals from existing applicants, as the focus of the scheme shifted away from advanced semiconductors with smaller nodes.

Under the modified PLI program, the government may provide a fiscal incentive of up to 50% of the project cost for setting up semiconductor fabs in India at any node, including mature nodes. Additionally, a fiscal incentive of 50% of the project cost is available for establishing display fabs with specified technologies in India.

The Vedanta-Foxconn joint venture (JV) announced that they had re-submitted an application to establish an electronic chip manufacturing plant in India. They stated in a statement, We have submitted the application as per the revised guidelines. We are committed to constructing a world-class fab in India. According to the joint venture, their previous application did not meet the requirements to receive financial incentives because they were unable to find a partner with the necessary technical expertise to produce advanced semiconductor chips. In their new application for chip production under the government's $10 billion production-linked incentive (PLI) scheme, the company has requested government incentives in the 40-nanometer (nm) chip category instead of the previously proposed 28-nm. The announcement follows a media report the day before, which stated that Foxconn was seeking a new partner and stepping back from the one-year-old joint venture with the Anil Agarwal-led Vedanta group. The report mentioned that government officials had advised Foxconn to find a different partner due to concerns about Vedanta's financial stability. Initially, the company had planned to establish a plant in Dholera, Gujarat, with an investment of approximately Rs 1.5 trillion, with revenue expected to begin by 2027. In September 2022, the Ministry of Electronics and Information Technology revised the semiconductor PLI scheme, offering a uniform 50% incentive of the project costs for all semiconductor nodes. Last month, the ministry invited new proposals from existing applicants, as the focus of the scheme shifted away from advanced semiconductors with smaller nodes. Under the modified PLI program, the government may provide a fiscal incentive of up to 50% of the project cost for setting up semiconductor fabs in India at any node, including mature nodes. Additionally, a fiscal incentive of 50% of the project cost is available for establishing display fabs with specified technologies in India.

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement