Under the $10 billion (₹82,223 crore) Indian Semiconductor Mission (ISM), the Indian government is on the brink of approving Vedanta and Taiwan’s Foxconn’s joint venture chip-making plan, as the country strives to establish itself as a global semiconductor manufacturing hub.

What Happened? Senior officials informed Economic Times that they are about to approve the joint venture’s proposal to fabricate chips, provided specific conditions are met. This move aligns with the government’s vision to bolster chip manufacturing in India and position the country as a key player in the semiconductor industry.

Vedanta Foxconn Semiconductors Ltd (VFSL) has already inked initial pacts for technology transfer with GlobalFoundries and STMicroelectronics. The daily reported, citing sources, that they have submitted details of these partnerships to the Ministry of Information Technology (MeitY).

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The sources said that the IT ministry has requested VFSL to provide details of a binding technology transfer agreement with either of the two companies. The IT ministry has also reportedly suggested that GlobalFoundries and STMicro consider acquiring a stake in VFSL.

VFSL, a joint venture between Vedanta Group and Hon Hai Precision Industry (Foxconn), has plans to invest ₹66,000 crore in establishing a semiconductor manufacturing unit in Gujarat.

The government aims to offer subsidies of around 50% to selected applicants under the ISM initiative, intended to kickstart chip manufacturing in India.

Foxconn, a major manufacturer of Apple‘s iPhones has been expanding its footprint in the country. A unit of the firm last week bought a 300-acre plot of land in the Bengaluru rural district of Karnataka for around ₹300 crore.

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