A joint venture (JV) between India’s Vedanta and Taiwan’s Foxconn announced its chipmaking plans in Gujarat in September 2022. The $19.5 billion chip-making plan was expected to be “an important step” in boosting India’s chipmaking ambitions. However, things haven’t gone as planned as the JV continues its search for a third tech partner. According to a report by Reuters, Vedanta-Foxconn got STMicroelectronics on board for licensing technology. But, the government wants the European chipmaker to have “more skin in the game” – such as a stake in the partnership.
The report notes that STMicro is not interested in that deal and the talks remain in limbo. “From STM’s perspective, that proposal doesn’t make sense because it wants “the India market to first be more mature,” the report added.
In an interview, MoS IT Rajeev Chandrasekhar said that Vedanta-Foxconn JV was “struggling currently to tie up with a technology partner.” STMicro is yet to comment.
What the Vedanta-Foxconn venture has to say
In a statement, Vedanta-Foxconn JV CEO, David Reed, said they have an agreement with a technology partner to transfer technology with licenses. The report adds that he has declined to comment further.
In an attempt to revive investor interest, India’s IT ministry has recently said that the country will start re-inviting applications for chipmaking incentives. The initial application phase was only a 45-day window whereas interested companies can apply for the incentive until December 2024.
“It is expected that some of the current applicants will reapply and new fresh investors will also apply,” Chandrasekhar wrote on Twitter.
Apart from the Vedanta-Foxconn JV, two other companies, Israeli chipmaker Tower-backed ISMC and Singapore-based IGSS Ventures also applied for the government incentive.
US-based chip-making giant Intel’s ongoing acquisition deal of Tower is under review as it awaits regulatory approval. This deal has stalled ISMC’s plans to build a chip-making facility in Karnataka. Whereas, IGSS had to drop out as it wants to re-apply for the incentive to build its plant in Tamil Nadu.
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