Vedanta-Foxconn JV asked to provide information on chip fabrication
Technology

Vedanta-Foxconn JV asked to provide information on chip fabrication

The Vedanta-Foxconn joint venture may or may not have the "necessary technical know-how" for manufacturing and fabricating semiconductors, according to the Centre. Vedanta and Foxconn Technology Group have been asked by the Ministry for Electronics & Information Technology (MeitY) to provide more information about how they intend to obtain the necessary technical know-how or find a third partner with proven technical capacity. Foxconn hasn't really worked in manufacturing semiconductor chips on a massive scale.

Companies seeking incentives under India's ambitious Rs 76,000 crore scheme to build a complete semiconductor ecosystem must show clear expertise in the specialised field of semiconductor manufacturing.

Under the programme for the development of the semiconductor and display manufacturing ecosystem, mining conglomerate Vedanta and Hon Hai Technology Group ("Foxconn") have signed a joint venture agreement (JV) to establish a semiconductor manufacturing facility in India. To date, Vedanta-Foxconn is the only applicant which is still scouting for a factory location.

Industry insiders who are aware of the IT ministry's discussions said that while Foxconn excels at making electronics systems, moving into the semiconductor industry would be a "backward integration" that would require a technology partner.

According to the MoU the two businesses signed, Vedanta will own the majority of the equity stake in the JV while Foxconn will hold a minority stake.

Vedanta intends to make an investment in the semiconductor chip manufacturing facility of up to Rs 66,000 crore. At the time, the company had stated that it would use a 28-nanometer (nm) fabrication to target electronics and smartphones.

The Vedanta-Foxconn joint venture may or may not have the necessary technical know-how for manufacturing and fabricating semiconductors, according to the Centre. Vedanta and Foxconn Technology Group have been asked by the Ministry for Electronics & Information Technology (MeitY) to provide more information about how they intend to obtain the necessary technical know-how or find a third partner with proven technical capacity. Foxconn hasn't really worked in manufacturing semiconductor chips on a massive scale. Companies seeking incentives under India's ambitious Rs 76,000 crore scheme to build a complete semiconductor ecosystem must show clear expertise in the specialised field of semiconductor manufacturing. Under the programme for the development of the semiconductor and display manufacturing ecosystem, mining conglomerate Vedanta and Hon Hai Technology Group (Foxconn) have signed a joint venture agreement (JV) to establish a semiconductor manufacturing facility in India. To date, Vedanta-Foxconn is the only applicant which is still scouting for a factory location. Industry insiders who are aware of the IT ministry's discussions said that while Foxconn excels at making electronics systems, moving into the semiconductor industry would be a backward integration that would require a technology partner. According to the MoU the two businesses signed, Vedanta will own the majority of the equity stake in the JV while Foxconn will hold a minority stake. Vedanta intends to make an investment in the semiconductor chip manufacturing facility of up to Rs 66,000 crore. At the time, the company had stated that it would use a 28-nanometer (nm) fabrication to target electronics and smartphones.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Sabarmati Riverfront Two Plots Up for Auction at Rs2.24 bn Base Price

Two commercial plots on the western bank of the Sabarmati Riverfront will be auctioned with a base price of Rs 112 crore each, equivalent to Rs 1.12 bn apiece and Rs 2.24 billion in total. The parcels are located adjacent to the Metro Rail Bridge in Ahmedabad and form the first commercial offering after a prolonged pause. The Riverfront Development Corporation has framed the sale as part of a phased commercial release to revive development along the riverfront. The combined base valuation has been set by the corporation to reflect market rates along the riverfront. The corporation has fixed a ..

Next Story
Infrastructure Urban

Andhra Pradesh to Connect Over One Million Streetlights

Andhra Pradesh will undertake a statewide smart streetlighting programme across all 123 Urban Local Bodies (ULBs), bringing around 1.05 million (mn) streetlights under an AI enabled monitoring and management system. The programme will be implemented by Energy Efficiency Services Limited (EESL) with the Commissioner and Director of Municipal Administration under the state Municipal Administration and Urban Development Department. The project aims to convert conventional streetlighting into a digitally managed municipal service monitored and maintained remotely. The initial phase will cover abou..

Next Story
Infrastructure Urban

AMC To Procure Four Machines For Guard Rail Cleaning

Ahmedabad Municipal Corporation will introduce four specialised machines for cleaning guard railings along major roads and the central verges of BRTS and Metro corridors. The civic body plans to replace manual labour with mechanised cleaning to improve maintenance of road infrastructure and greenery. The purchase is estimated at Rs 82.8 million (mn), excluding GST. The proposal sets the base price of each machine at about Rs 20.7 million (mn) so four units total Rs 82.8 million (mn) before GST. 18 per cent GST will be applicable separately. During the warranty period each machine will operate ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement