Vedanta-Foxconn JV Resubmits Application For Setting Up Semiconductor Unit

"We have submitted the application as per the revised guidelines. We are committed to building a world-class fab in India," Vedanta Foxconn Semiconductor Ltd said in a statement 

The company had earlier announced that the plant will be set up with an investment of around Rs 1.5 lakh crore and start making revenue by 2027 ( Image Source :Getty )

The Vedanta-Foxconn joint venture has resubmitted its application to set up an electronic chip manufacturing plant, following the reopening of semiconductor fabrication plant applications by the government. The news was confirmed by the company as per a report by PTI and other outlets. It was reported earlier that the government may deny funding to Vedanta-Foxconn's joint venture, as it sought incentives in the 28-nanometer chips category. 

"We have submitted the application as per the revised guidelines. We are committed to building a world-class fab in India," Vedanta Foxconn Semiconductor Ltd said in a statement, as per PTI. 

The company had earlier announced that the plant will be set up with an investment of around Rs 1.5 lakh crore and start making revenue by 2027. The company has re-submitted the application under the modified semiconductor programme. 

Under the revised program, the fiscal support for setting up semiconductor fabs in India, irrespective of node size, including mature nodes, has been increased to 50 per cent of the project cost. Similarly, a 50 per cent fiscal incentive is available for establishing Display Fabs with specified technologies in the country.

Previously, the scheme offered fiscal support of 30 per cent of capital expenditure to approved units for setting up compound semiconductors, silicon photonics, sensor fabs, and semiconductor assembly test marking and packaging (ATMP) facilities in India.

The CEO of the company, David Reed, had earlier stated their intention to manufacture 28-nanometer and 40-nanometer wafers. The production is scheduled to commence with 5,000 wafers in the first part of 2027, with plans to scale up the production capacity to 40,000 wafers per month.

As per a report by Business Today, the new application focuses on 40-nanometer (nm) node technology. Initially, Vedanta had applied for the 28 nm node last year. However, with the technology partner Vedanta Foxconn Semiconductor on board, the joint venture is now interested in pursuing both the 28 nm and 40 nm nodes.

Earlier, it was reported that Foxconn, the JV partner, is searching for a new partner for its semiconductor business. At the time of the creation of the joint venture, Vedanta held a 67 per cent stake with the aim to establish a semiconductor fab in Dholera, Gujarat. The report indicated that the Ministry of Electronics and Information Technology (MeitY) had expressed its preference for Foxconn to lead the joint venture.