The Indian government is poised to deny crucial funding for Anil Agarwal's chip venture, Bloomberg News reported on Tuesday, a setback to the billionaire's ambition to build India's 'own Silicon Valley.'
The authorities are likely to inform the venture between
Vedanta and Taiwan's Foxconn that it won't get incentives to make 28-nanometer
chips, the report said, citing people familiar with the matter.
The venture's application seeking billions in government assistance
hasn't met the criteria set by the government, the report said. The project is
still in search of a technology partner and a manufacturing-grade technology
license for the construction of 28nm chips, it added.
India's technology ministry, Vedanta and Foxconn did not
immediately respond to Reuters requests for comment.
The setback comes at a time when Agarwal's metals and mining
conglomerate is already grappling with reducing its significant debt load.
Last year in September, Vedanta and Foxconn – formally
called Hon Hai Precision Industry – announced they would invest $19.5 billion to
set up semiconductor and display production plants in the state of Gujarat,
creating more than 100,000 jobs.
"India's own Silicon Valley is a step closer now,"
Agarwal had said last year after the announcement.
Back in May last year, Agarwal had said Vedanta would
finalise a location for its semiconductor and display plants in India by
mid-June and will have the first chip product ready in two years. "You
have to create another Taiwan in India," Agarwal said at the time, noting
that India would have to focus on bringing the entire semiconductor ecosystem
locally for it to be a global powerhouse.
In February 2022, Foxconn had announced that it would make
semiconductors in India in partnership with Vedanta. In a statement, Foxconn
had said it had signed a memorandum of understanding with oil-to-metals group
Vedanta to make semiconductors, calling it "a significant boost to
domestic manufacturing of electronics in India." © Reuters
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