Why did the storied Foxconn-Vedanta deal come a cropper? Why has the $19.5 billion investment fallen through in a strange sort of anti-climax? Vedanta and Foxconn had got on board STMicro for licensing technology, but the government had made it clear that it wanted the European chipmaker to have "more skin in the game", which translates into a stake in the partnership.
For Vedanta to pony up, it required to find a suitable boy, i.e., the right technical partner for 20-28 nm size chips, in time, and Foxconn eventually pulled out (the "most advanced" chips are around 5 nm).
Foxconn stated that it had worked with Vedanta for more than a year to bring "a great semiconductor idea to reality", but they had mutually decided to end the joint venture and it will remove its name from an entity that is now fully-owned by Vedanta.
Vedanta, on its part, said that it reiterates that it is fully committed to its semiconductor fab project and "we have lined up other partners to set up India’s first foundry. We will continue to grow our semiconductor team, and we have the licence for production-grade technology for 40 nm from a prominent Integrated Device Manufacturer (IDM). We will shortly acquire a licence for production-grade 28 nm as well".
Vedanta has redoubled its efforts to fulfil the Prime Minister's vision for semiconductors and India remains pivotal in repositioning global semiconductor supply chains. Which sounds like a marriage gone sour.
Sources close to developments also revealed that concerns about incentive approval delays by the Union government had contributed to Foxconn's decision to pull out of the venture. The government had raised posers on the costing provided to request incentives from the government. The government has also decided to keep open the $10 billion financial incentive scheme with a 50 per cent subsidy on investments for making semiconductors in India for potential applicants.
From the government side - "It was well known that both companies had no prior semiconductor experience or technology and were expected to source technology from a partner", Union minister Rajeev Chandrasekhar tweeted.
Vedanta and Foxconn had signed agreements in September 2022 to invest $19.5 billion to set up semiconductor and display production plants in Gujarat.
Tripura mountaineer’s Everest expedition begins with cycling journey to Nepal
In a momentous display of resilience and ambition, Assam Rifles flagged off Aritra Roy, an accomplished mountaineer from Tripura, as he embarked on an extraordinary quest to conquer Mount Everest.
SpaceX crew-10 docks at ISS, to bring home Sunita Williams, Butch Wilmore this week
SpaceX's Crew-10 mission successfully docked at the International Space Station (ISS) on Sunday, bringing hope for the return of two NASA astronauts -- Sunita Williams and Butch Wilmore -- who have been stuck in orbit for months.
Music Director AR Rahman hospitalised in Chennai
Renowned music composer and Oscar winner A.R. Rahman has been admitted to a private hospital on Greams Road in Chennai after experiencing chest pain.
Death toll in US airstrikes on Yemen Houthis climbs to 23
The death toll has reached 23 after the US attack on several Houthi positions in the Yemeni capital, Sanaa, according to media reports.
CM Lalduhoma credits HM Shah for transfer of Assam Rifles' land to Mizoram govt
Mizoram Chief Minister Lalduhoma on Saturday said that Union Home Minister Amit Shah significantly supported the transfer of the Assam Rifles’ land to the state government and stated that his (Shah) name shall be remembered and engraved in the history of Mizoram.
HM Shah inaugurates Lachit Barphukan police academy in Assam
Union Home Minister Amit Shah on Saturday inaugurated the Lachit Barphukan Police Academy in Assam's Dergaon, marking a significant step towards enhancing law enforcement infrastructure in the northeastern region.
Tripura CM Dr Manik Saha to lead high-level task force for investment promotion in NE India
In a significant development of the Prime Minister Narendra Modi’s dream of making India – Viksit Bharat by 2047, the Ministry of Development of North East Region (MDoNER) has appointed Tripura Chief Minister Dr Manik Saha as the Convenor of the High-Level Task Force for investment promotion in North East region of the country.
In a first, 9 Tripura youths get nursing caregiver jobs in Japan
For the first time, nine youths from Tripura have got jobs in Japan as nursing caregivers and 60 more candidates would go to the East Asian country in the next financial year (2025-26) for work, officials said here on Saturday.