Vedanta-Foxconn resubmits Indian wafer fab proposal

Vedanta-Foxconn resubmits Indian wafer fab proposal

Business news |
By Peter Clarke

A joint venture between Indian mining conglomerate Vedanta Ltd. and electronics assembly specialist Foxconn has resubmitted a bid for government support to build a wafer fab.

India’s Ministry of Economics and IT extended the application window beyond June 1, 2023 and called for new submissions while telling those that had already applied that they should submit suitably modified proposals.

A Vedanta spokesperson reportedly said: “We have submitted the application as per the revised guidelines. We are committed to building a world class fab in India.” A year ago the proposal discussed a 28nm-capable wafer fab, but it is believed the resubmission references 40nm production.

Vedanta agreed to form the JV in February 2022 (see Foxconn heads to India for JV wafer fab). The project envisages a potential total investment of US$20 billion but concerns have been raised over the state of Vedanta finances. Vedanta currently holds 67 percent of the JV and Foxconn 33 percent.

It is also understood that MIET was disappointed not to have garnered any significant inward investors in its semiconductor incentive program and was concerned that existing proposals lacked the technical expertise and IP cross-licenses to enable success.

Recent reports suggest that Foxconn has been involved in discussions with other businesses in efforts to broaden the technical base of the JV. It has also been reported that Vedanta and Foxconn had disagreed over changes in the revised application.

If it goes ahead, the plan calls for the wafer fab to start in 2027 with a manufacturing capacity of 5,000 wafers per month with but be able to scale production capacity up to 40,000 wafers per month, according to reports.

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