Vedanta-Foxconn chip factory set to get government approval: Reports

16 May 2023 , 02:53 PM

Vedanta-Foxconn joint venture of chip making factory is all set to get the government approval under the $10-billion Indian Semiconductor Mission (ISM), said senior government officials, as per the Economic Times. This will help India to become as a global hub for semiconductors.

The official said, “Their plan is for fabrication of 40 nm (nanometre) chips–there are some conditions they need to fulfil. We are going to approve it.”

Vedanta Foxconn Semiconductors Ltd (VFSL) has signed the pact with US headquartered GlobalFoundries and European chip-maker STMicroelectronics (STMicro). The details of the pact have been submitted already to the Information Technology (IT) ministry, as said by the officials. The government has asked VFSL to submit details of the “binding technology transfer agreement” with either of the two companies, the person added.

The government plans to give close to 50% subsidy to selected applicants under the ISM initiative in a bid to kickstart chip manufacturing in the country. The ISM programme was announced in December 2021.