Centre unsure Vedanta-Foxconn JV has appropriate technical knowhow for semiconductor mfg

The Centre is unsure if the Vedanta-Foxconn joint venture has the appropriate technical knowhow for semiconductor manufacturing and fabrication, multiple sources aware of the governments thinking on the matter said.

The ministry for electronics & information technology (MeitY) wants the Anil Agarwal-owned Vedanta and Taiwan-based Foxconn Technology Group to provide more details on how they plan to acquire the required expertise, or get a third partner with demonstrated technical capability, according to the sources who declined to be identified.

We are not very sure on how they (Vedanta-Foxconn) plan to achieve the scale that the government envisions. We want the companies to clarify on this, said one senior government official, while noting that Foxconn has not really been involved in large-scale fabrication of semiconductor chips.

The government had sought further details or asked it to include a third partner, a representative of Vedanta said no such request was made by the ministry.

Companies need to demonstrate clear expertise in the specialised field of semiconductor manufacturing to qualify for incentives under Indias ambitious Rs 76,000 crore scheme aimed at creating a comprehensive semiconductor ecosystem, the sources pointed out. Userwalls