Vedanta-Foxconn JV locks in high-volume technology partner for semiconductor manufacturing

The Indian mining conglomerate Vedanta, led by Anil Agarwal, which is keen to enter the semiconductor space, has finally put the jigsaw puzzle together. The Vedanta-Foxconn joint venture for semiconductor manufacturing has finally closed on a technology partner and has access to manufacturing-grade high-volume technology, the senior officials of Vedanta semiconductor business told Business Today.

The government of India has announced a financial incentive of Rs 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. 

According to the information accessible to Business Today, India Semiconductor Mission had asked Vedanta-Foxconn JV to furnish more details about the technology partner, which just recently the company had adhered to. In the Vedanta-Foxconn JV, the latter is responsible for delivering the technology partner.

“The JV has locked in the technology transfer. And once we execute it, and post the approval, we'll definitely be happy to reveal it. India Semiconductor Mission has the document,” said Akarsh Hebbar, global MD of Vedanta’s semiconductor and display business.

Semiconductor veteran David Reed, who recently joined as the CEO of Vedanta-Foxconn Semiconductors Limited, said, “We do have now access to a manufacturable grade, high volume technology. We have access to all the documentation and design IP, and it can support industrial and especially automotive. We can't go into details - who it is. But we've already started the transfer process.” 

Recently, Reed was in Taiwan for two weeks to review the details personally. “It's bonafide high volume, 40-nanometer production-grade technology," he told BT.

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.

Understanding the delay in the approval process, Hebbar added: “Timeline-wise, this is not a fire project. It's 10 to 15 years project. China has been working on it for 30 years and is still trying to figure out the semiconductor space. So, when we take the lead, which we will, we must hit the ground running. That's why we're working on all fronts. We're not just waiting for the approval, and we're just trying to make sure that we're working on all fronts and hitting the ground running. The approval will showcase to the world that this subsidy is needed, and the first company is doing this, and then other companies can follow suit.”

As India Semiconductor Mission evaluates the document, Vedanta officials hope to receive a response on the application in the next couple of months. 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.