The Vedanta-Foxconn semiconductor consortium is facing obstacles in discussions with STMicroelectronics regarding its entry into the deal as a technology partner, due to factors such as technology transfer, duration of the partnership, and funds to be invested by each company. STMicroelectronics wants to limit the scope of the technology transfer, and have a sunset clause regarding the duration of the joint venture, with a desire to exit after 5 to 10 years. The Vedanta-Foxconn consortium wants the European chipmaker to stay on for longer. The inclusion of STMicroelectronics in the Vedanta-Foxconn chipmaking project is crucial to securing Indian government incentives for the plant . The JV must either possess a fabrication unit capable of producing semiconductor chips within the 65-28 nm range, or have “production-grade licensed technologies” to manufacture 28 nm chips, to qualify for inclusion.
Vedanta, led by Anil Agarwal, is aiming to make India a semiconductor hub, promising to produce affordable, high-quality and innovative semiconductors and displays within the next two and a half years. Agarwal had shared that the company has signed memorandum of understandings (MOUs) with 100 Japanese firms and expects 700-800 more companies to associate with Vedanta to help achieve this goal in a speech last month at the India Today Conclave 2023. Ground breaking on the new fab was supposed to be in February, 2023. So far, there is no movement.
