Vedanta-Foxconn Semiconductor JV Finally Shares Details Of Technology Partner The Vedanta-Foxconn consortium is one of the five applicants seeking government incentives under a $10-billion package announced in December 2021 to promote domestic semiconductor manufacturing

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

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

Pexels

Vedanta-Foxconn Semiconductors, the joint venture between India's Vedanta group and Taiwanese contract manufacturer Foxconn, has finally closed on a technology partner and has access to semiconductor manufacturing-grade high-volume technology, according to a BT report, citing a senior Vedanta executive.

The government of India has 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, stated the report.

Akarsh Hebbar, managing director of the company's global display and semiconductor business in the news report was quoted as saying, "Foxconn is accountable for bringing in technology partners, and the JV will enable more licences as needed. There will be a bunch of technology. Most of it is in Foxconn and we will start enabling more licenses as needed. We do not believe we need a third equity partner as much as we need parts. Whatever help we need from others, we will add to that."

Also, he further added that, "Vedanta will be taking the initiative on the construction of the factory in Gujarat. The company intends to start generating revenue from the semiconductor unit by 2027."

Validating the same and giving more insights about the venture, Vedanta Foxconn Semiconductors chief executive David Reed, has reportedly stated that, "With Foxconn taking the lead on bringing in technology partners, the JV has full access to a "world-class manufacturable, high-volume, automotive-grade technology. The objective is to reduce the risk with this technology from Foxconn. The other aspect of reducing the risk is Foxconn has experience with these large mega projects building an ecosystem, not only the infrastructure, the supplier but also the social side."

Acknowledging the government as the biggest stakeholder, Hebbar says the government is making sure they are doing the due diligence by asking the right questions, expecting those answers and then working on it. Even though the India Semiconductor Mission is yet to approve the application, Vedanta has already shortlisted Prime Minister Narendra Modi's home state, Gujrat, for setting up its semiconductor and display fab and progressing with its plan, added the report.

The Vedanta-Foxconn consortium is one of the five applicants seeking government incentives under a $10-billion package announced in December 2021 to promote domestic semiconductor manufacturing where the government is committed to footing 50% of the project cost, along with providing other incentives.

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.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Related Topics

News and Trends

The Transformative Power Of Entrepreneurial Households In Shaping The Future Of The Indian Economy

According to the report, India's 247 million entrepreneurial households drove an $8.8 trillion transaction value in FY23 unleashing a new economic landscape.

Leadership

International Security Firm Welcomes Female India Native to an Essential Leadership Position

Yasmin Brar has been appointed as the Operations Strategy Director, a role that underscores the company's commitment to innovation, expansion, and strategic management

Growing a Business

The Owners of This Texas Farmers Market Took a Big Gamble. Here's How It Paid Off Bigger Than They Dreamed.

A Texas farmers market educates customers about the importance of shopping local for a healthy lifestyle and an even healthier small business community.

Thought Leaders

8 Reasons Why We Need Entrepreneurs Now More Than Ever

Entrepreneurship is the driving force behind the global economy's growth. Now more than ever, we need new entrepreneurs to spur innovation.

News and Trends

Kaynes Semicon To Invest INR 4,000 Crore On OSAT/ATMP

The investment is expected to create around 1,000-plus jobs