Bloomberg Article: Indian Government may deny funding to Vedanta-Foxconn chip venture

31 May 2023 , 10:35 AM

According to Bloomberg News on Tuesday, the Indian government is prepared to withhold vital funding from Anil Agarwal’s semiconductor company, putting the billionaire’s plans to create India’s ‘own Silicon Valley’ in jeopardy.

According to the article, which cited persons with knowledge of the situation, the government will probably warn the joint venture between Vedanta and Foxconn of Taiwan that it won’t receive incentives to produce 28-nanometer chips.

According to the article, the venture’s proposal for billions in government funding did not meet the requirements. For the creation of 28nm chips, the initiative is still looking for a technical partner and a manufacturing-grade technology licence, it noted.

The setback occurs just when Agarwal’s metals and mining company is struggling to pay down a sizable amount of debt.

Vedanta and Foxconn, formerly known as Hon Hai Precision Industry Co Ltd, announced in September of last year that they would invest $19.5 billion to build semiconductor and display production facilities in the state of Gujarat, resulting in the creation of more than 100,000 jobs.

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