Get All Access for $5/mo

Government To Deny Funding For Vedanta-Foxconn Chip Venture As per available reports, the government is likely to tell the venture between Agarwal's Vedanta Resources Ltd. and Taiwan's Hon Hai Precision Industry Co. it won't get incentives to make 28-nanometer chips

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.


India's government is poised to deny crucial funding for billionaire Anil Agarwal's chip venture, a setback for a $19 billion push to make semiconductors in the country, according to a Bloomberg report. Citing people familiar with the matter, the report also said that the government is likely to tell the venture between Agarwal's Vedanta Resources Ltd. and Taiwan's Hon Hai Precision Industry Co. it won't get incentives to make 28-nanometer chips.

The venture has applied for such assistance, potentially worth billions of dollars, but hasn't met the criteria set by the government. While Vedanta and Hon Hai can apply again, a rejection would mean delays for Agarwal's ambition to establish India's first major chipmaking operation, even as his metals and mining conglomerate struggles to reduce a heavy debt load, as per the report.

Nine months after Agarwal announced the chip partnership to build India's 'own Silicon Valley,' the project is yet to find a technology partner or license manufacturing-grade technology for the 28 nm chips it was seeking to build, the people said. At least one of those steps is needed for the venture to get government assistance.

Last month, Vedanta-Foxconn JV shared the information that it has closed on a technology partner. At the time of this proposal, the government of India had announced a financial incentive of INR 76,000 crore for setting up semiconductor and display manufacturing in the country. One of the prerequisites for the project approval and qualifying for the semiconductor incentive was to have a license-grade semiconductor technology manufacturer with sufficient experience in chip manufacturing.

As per a company's spokesperson, it was Foxconn accountable for bringing in technology partners, and the JV will enable more licences as needed, whereas Vedanta was responsible for the factory construction.

Currently, a representative for Vedanta said the company was awaiting the outcome of its application from the government.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
News and Trends

Dee Piping Goes Public: Announces Initial Public Offering

Dee Development Engineers Limited, commonly known as 'Dee Piping,' has announced its transition into a public limited company.

Business Solutions

Increase Productivity with This Microsoft 365 Subscription, Now $25 Off

It can make the entrepreneur life a lot easier.

News and Trends

Unifi Capital Launches Two New Funds at GIFT City

Rangoli India Fund and G20 Portfolio are the two new funds launched by Unifi Capital, via its subsidiary UIML in GIFT City, to expand international investment opportunities.

Business News

Apple Pay Later Is Ending. Here's What's Taking Its Place.

The program was available for less than a year.


I've Grown a High-Performing Team in Just 2 Years — Here's are 5 Growth Strategies I Learned

A team's strength lies in its people's individual skills and how they synergistically come together.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.