The Indian government was tipped to block access to a state incentive scheme for a chip joint venture between Vedanta Group and Hon Hai Precision (Foxconn), as the project hasn’t qualified for the funding, Bloomberg reported.
Bloomberg stated the venture’s application for incentives didn’t meet the government’s criteria, including selecting a partner or licensing manufacturing-grade technology for making 28nm chips.
The venture partners have no previous experience making semiconductors, but can reapply for state assistance, Bloomberg wrote.
Vedanta was one of 16 companies selected to receive funding in an INR450 billion ($5.4 billion) government incentive scheme in late 2020. Its operations spans technology, mining, oil and gas.
The India-based conglomerate set up a venture with Foxconn to manufacture chips in the country in 2022, with the aim to be India’s first major chipmaking operation.