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.

Next Story
Infrastructure Transport

Bombay HC Orders MMRDA To Delay Bids for Thane-Ghodbunder Tunnel

The Bombay High Court directed the Mumbai Metropolitan Region Development Authority (MMRDA) to delay opening financial bids for the Thane-Ghodbunder to Bhayandar tunnel and elevated road project until Thursday. This followed a plea by construction firm Larsen & Toubro (L&T), which claimed it was not informed about the status of its bid while others were.The project, estimated to cost Rs six hundred billion, includes a 9.8 kilometre elevated road over Vasai Creek and is set to be the second longest such structure after the Atal Setu. It is planned as an extension of the Mumbai Coastal R..

Next Story
Infrastructure Energy

India Sets Up First Carbon Capture Testbeds for Cement Industry

India has launched five Carbon Capture and Utilisation (CCU) testbeds in the cement sector, forming the first innovation cluster to combat industrial carbon emissions. The Department of Science and Technology (DST) introduced this initiative to support the country’s climate goals and reduce emissions from carbon-intensive industries.CCU technology can trap carbon dioxide from cement manufacturing and convert it into valuable products such as synthetic fuels, urea, soda, chemicals, food-grade CO2, and concrete aggregates. This initiative aligns with India’s National Determined Contributions..

Next Story
Infrastructure Urban

Karnataka Considers One-Time Settlement of Contractor Dues

The Karnataka government is mulling a one-time settlement plan to address pending dues of Rs 320 billion owed by eight departments, including the Bruhat Bengaluru Mahanagara Palike (BBMP), to private contractors across the state.This proposal was discussed in a meeting between Deputy Chief Minister D K Shivakumar and Karnataka State Contractors’ Association president R Manjunath in Bengaluru. Manjunath noted that small- and medium-scale contractors were the most affected by the prolonged payment delays, with some waiting for up to two years.The Deputy Chief Minister directed officials to pri..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?