Government Likely to Approve Vedanta-Foxconn Semiconductor Project
India, a global leader in mobile phone and electronics assembly, is now taking decisive steps towards building its first modern semiconductor fabrication plant. The Vedanta Group, in partnership with Taiwan’s Hon Hai Precision Industry (Foxconn), signed an MoU with the Gujarat government in September last year to establish semiconductor and display manufacturing units in the state.
According to an Economic Times report, the Government of India is set to approve the consortium’s proposal under the USD 10 billion India Semiconductor Mission (ISM). The plan involves the fabrication of 40nm chips, with certain conditions to be met before final clearance.
Vedanta Foxconn Semiconductors Ltd (VFSL), the joint venture, is 63% owned by Vedanta and 37% by Foxconn. VFSL has already signed technology transfer agreements with GlobalFoundries and STMicroelectronics and submitted the details to the Ministry of Electronics and Information Technology (MeitY). The ministry has recommended that these technology partners also acquire equity in VFSL, to which they have responded positively.
The ISM, launched in December 2021, offers incentives to boost India’s semiconductor and display ecosystem. For subsidy eligibility, VFSL must provide binding technology transfer details, intellectual property ownership, duration of technology use, and profiles of technical experts involved.
The company plans an initial investment of ₹66,000 crore in its chip-making facility at Dholera, Gujarat, with a total investment of ₹1.54 lakh crore for both the semiconductor and display fabrication units.
Other players, including Next Orbit Ventures (in collaboration with Israel’s Tower Semiconductor) and IGSS Ventures from Singapore, have also submitted proposals to set up chip-making plants in India—signaling a competitive race to build the nation’s semiconductor future.
