Vedanta and Foxconn each submit separate proposals for chip fabrication units
Earlier in the day, Bloomberg that Foxconn had tied up with European company STMicroelectronics NV for a bid to build a semiconductor factory in India. The tie-up is to set up a 40nm chip plant, Vedanta and Foxconn did not respond to emails seeking details of the proposals they had sent to the government. The Vedanta Group and Foxconn had earlier formed a joint venture, Vedanta Foxconn Semiconductors Ltd, to set up a chip fabrication unit in Gujarat. Nearly a year after it was announced, Foxconn left the joint venture but said it remained committed to setting up a chip fabrication unit in India.
The Foxconn-Vedanta joint venture, announced in February 2022, was one of the first few participants in the government's strategically crucial India Semiconductor Mission. Had in June this year that the partnership between the two companies was on the rocks after Foxconn raised concerns about the financial viability of the Vedanta Group. Responding to queries, a Vedanta spokesperson had then said the company was confident of servicing all of its debt obligations.
In July, Foxconn informed the Ministry of Electronics and Information Technology that it would set up at least 4-5 chip production lines in India, citing sources. Foxconn had also informed the IT ministry of at least two memoranda of understanding that it had then signed with different partners.