1. Home
  2. Technology
  3. India expands scope of semiconductor ambitions, Vedanta seeks lifeline
India expands scope of semiconductor ambitions, Vedanta seeks lifeline
Technology

India expands scope of semiconductor ambitions, Vedanta seeks lifeline

01 Jun 2023 2 Min Read CW Team
The central government of India has opened the doors for new and existing applicants to submit proposals for semiconductor fabrication plants. Union Minister for Information Technology, Rajeev Chandrashekhar, tweeted that there are expectations of both reapplications from current applicants and new investors showing interest in the semiconductor sector. However, the joint venture between Vedanta Resources Ltd., led by Agarwal, and Taiwan's Hon Hai Precision Industry Co. is likely to be informed that it won't receive incentives for producing 28-nanometer chips. The venture had applied for substantial financial support worth billions of dollars but failed to meet the government's criteria.

While Vedanta and Hon Hai have the option to reapply, a rejection would result in delays for Agarwal's vision of establishing India's first major chipmaking operation. This setback comes at a challenging time for Vedanta, as the conglomerate is already grappling with significant debt burdens.

Chandrashekhar stated that the initial application window for more expensive 28nm fabs was open for only 45 days in January 2022, attracting three applications. These applications were evaluated by the India Semiconductor Mission (ISM) and its advisory group. The current strategy also aims to encourage investments in mature nodes beyond 40nm, allowing current and new players to apply afresh based on their technology capabilities.

In the near future, the government may request Vedanta to submit a new application for financial support to manufacture 40nm chips along with a revised capital expenditure estimate. This bid can be considered once the application process for incentives is reopened by the government, as part of its efforts to attract chipmakers to the country. Vedanta has been in talks with STMicroelectronics NV for licensing chip fabrication technology, although no official partnership announcement has been made yet.

The central government of India has opened the doors for new and existing applicants to submit proposals for semiconductor fabrication plants. Union Minister for Information Technology, Rajeev Chandrashekhar, tweeted that there are expectations of both reapplications from current applicants and new investors showing interest in the semiconductor sector. However, the joint venture between Vedanta Resources Ltd., led by Agarwal, and Taiwan's Hon Hai Precision Industry Co. is likely to be informed that it won't receive incentives for producing 28-nanometer chips. The venture had applied for substantial financial support worth billions of dollars but failed to meet the government's criteria. While Vedanta and Hon Hai have the option to reapply, a rejection would result in delays for Agarwal's vision of establishing India's first major chipmaking operation. This setback comes at a challenging time for Vedanta, as the conglomerate is already grappling with significant debt burdens. Chandrashekhar stated that the initial application window for more expensive 28nm fabs was open for only 45 days in January 2022, attracting three applications. These applications were evaluated by the India Semiconductor Mission (ISM) and its advisory group. The current strategy also aims to encourage investments in mature nodes beyond 40nm, allowing current and new players to apply afresh based on their technology capabilities. In the near future, the government may request Vedanta to submit a new application for financial support to manufacture 40nm chips along with a revised capital expenditure estimate. This bid can be considered once the application process for incentives is reopened by the government, as part of its efforts to attract chipmakers to the country. Vedanta has been in talks with STMicroelectronics NV for licensing chip fabrication technology, although no official partnership announcement has been made yet.

Next Story
Building Material
21 Dec 2024

JK Cement emerges successful bidder for Mahan coal mine in Madhya Pradesh

This marks the company’s second commercial coal block win, following its acquisition of the West of Shahdol (South) coal block. "The company is committed to becoming self-reliant for its existing cement plants and upcoming projects," JKC stated. The surplus coal from the mine will be sold commercially. The vesting order was handed over to JK Cement during a ceremony at Shastri Bhawan, New Delhi, a critical milestone for commencing mining operations within the stipulated timeline...

Read More
Next Story
Building Material
21 Dec 2024

Prism Johnson's cement division goes live with Ramco ERP Suite

Prism Johnson has successfully gone live with the Ramco ERP Suite for its Cement Division. This milestone marks a significant step in Prism Johnson's digital transformation journey, leveraging Ramco Systems' advanced enterprise solutions and process control systems to streamline business processes, manufacturing operations and drive efficiency. The implementation includes cutting-edge modules for Maintenance, Sales, Distribution, Finance, Procurement, Manufacturing, Quality, and HR Management (HRM). These solutions enable Prism Johnson to achieve seamless integration across its business and wo..

Read More
Next Story
Infrastructure Urban
21 Dec 2024

Indian shadow bank Shriram Finance gets record $1.28 billion loan

Shriram Finance Ltd. is reported to have borrowed $1.28 billion in a multi-currency social loan, marking the largest offshore facility ever undertaken by an Indian shadow lender. According to a press release issued by Shriram, the deal is divided across the dollar, euro, and dirham. Sources familiar with the transaction, who wished to remain anonymous, indicated that the tenors in the multi-tranche deal range from three to five years. This loan adds to the surge of offshore debt sales by Indian shadow lenders this year, a trend prompted by the Reserve Bank of India's tightening of rules in Nov..

Read More

Opinion Poll

Question : Which technological advancement do you believe will most transform the real estate industry in the coming years?

Latest updates

JK Cement emerges successful bidder for Mahan coal mine in Madhya Pradesh
Cement
21 Dec 2024

JK Cement emerges successful bidder for Mahan coal mine in Madhya Pradesh

Prism Johnson's cement division goes live with Ramco ERP Suite
Cement
21 Dec 2024

Prism Johnson's cement division goes live with Ramco ERP Suite

Indian shadow bank Shriram Finance gets record $1.28 billion loan
ECONOMY & POLICY
21 Dec 2024

Indian shadow bank Shriram Finance gets record $1.28 billion loan

Enso Group Partners With G-Energy To Launch Engine Oils In India
OIL & GAS
21 Dec 2024

Enso Group Partners With G-Energy To Launch Engine Oils In India

Air India Orders 34 Training Aircraft For Flight School
AVIATION & AIRPORTS
21 Dec 2024

Air India Orders 34 Training Aircraft For Flight School

Maruti Signs Deal with Bihar Govt to Automate Driving Tests
ROADS & HIGHWAYS
21 Dec 2024

Maruti Signs Deal with Bihar Govt to Automate Driving Tests

Pimpri Chinchwad Civic Body Imposes Time Restrictions
SMART CITIES
21 Dec 2024

Pimpri Chinchwad Civic Body Imposes Time Restrictions

BBMP to demolish 29 buildings in Bengaluru south zone
Real Estate
21 Dec 2024

BBMP to demolish 29 buildings in Bengaluru south zone

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000