Govt opens application for semiconductor manufacturing unit incentives
Technology

Govt opens application for semiconductor manufacturing unit incentives

The Indian government has announced a fresh call for applications to seek incentives for establishing semiconductor and display manufacturing fabs. This move follows the reported denial of benefits to a joint venture between Vedanta Resources and Foxconn under India's semiconductor mission.

Alongside the Vedanta-Foxconn JV, Singapore-based IGSS Ventures and ISMC, a consortium of Abu Dhabi-based Next Orbit Ventures and Israel's Tower Semiconductor, had also applied for the incentives. IGSS and ISMC plan to reapply, according to top executives from the respective consortiums. However, Vedanta-Foxconn has not responded regarding their plan of action.

According to a report, the government decided to reject incentives for Vedanta-Foxconn's proposed 28 nanometer semiconductor manufacturing facility due to the JV's failure to secure a technology partner or license manufacturing-grade technology within nine months of announcing their plans. An inquiry regarding Vedanta's intention to reapply for the incentives remained unanswered.

Raj Kumar, Founder and Group CEO of IGSS Ventures, stated that they will indeed reapply for the fab project in India, with plans to make changes based on discussions with the ISM, the nodal agency for the program. They intend to bring a major global semiconductor company on board as the lead investor of the consortium.

The ISM has expressed the need for a large anchor investor for the project. The consortium already has three global investors who have committed equity. Ajay Jalan, founder and MD of Next Orbit Ventures, confirmed that ISMC will also reapply, despite earlier indications from ISM that Next Orbit, a financial investor-run equity fund, should sell its stake to an Indian company.

While the Vedanta-Foxconn JV may file a new application to meet the government's criteria, the delay in receiving incentives, which cover 50% of the development costs of the fabrication unit, is considered a setback.

The Indian government has announced a fresh call for applications to seek incentives for establishing semiconductor and display manufacturing fabs. This move follows the reported denial of benefits to a joint venture between Vedanta Resources and Foxconn under India's semiconductor mission. Alongside the Vedanta-Foxconn JV, Singapore-based IGSS Ventures and ISMC, a consortium of Abu Dhabi-based Next Orbit Ventures and Israel's Tower Semiconductor, had also applied for the incentives. IGSS and ISMC plan to reapply, according to top executives from the respective consortiums. However, Vedanta-Foxconn has not responded regarding their plan of action. According to a report, the government decided to reject incentives for Vedanta-Foxconn's proposed 28 nanometer semiconductor manufacturing facility due to the JV's failure to secure a technology partner or license manufacturing-grade technology within nine months of announcing their plans. An inquiry regarding Vedanta's intention to reapply for the incentives remained unanswered. Raj Kumar, Founder and Group CEO of IGSS Ventures, stated that they will indeed reapply for the fab project in India, with plans to make changes based on discussions with the ISM, the nodal agency for the program. They intend to bring a major global semiconductor company on board as the lead investor of the consortium. The ISM has expressed the need for a large anchor investor for the project. The consortium already has three global investors who have committed equity. Ajay Jalan, founder and MD of Next Orbit Ventures, confirmed that ISMC will also reapply, despite earlier indications from ISM that Next Orbit, a financial investor-run equity fund, should sell its stake to an Indian company. While the Vedanta-Foxconn JV may file a new application to meet the government's criteria, the delay in receiving incentives, which cover 50% of the development costs of the fabrication unit, is considered a setback.

Next Story
Infrastructure Energy

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Next Story
Infrastructure Urban

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Next Story
Infrastructure Energy

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?