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The Indian government is expected to reject crucial funding for Anil Agarwal’s chip venture, reported Bloomberg. According to the report, government authorities will likely inform the joint venture between Taiwan’s Foxconn and Vedanta that it will not be receiving incentives for the production of 28-nanometer chips, delivering a blow to Anil Agarwal’s dream of establishing India’s version of Silicon Valley.
The report by Bloomberg claims that the venture’s application asking for billions in funding from the government in assistance has failed to meet the government’s specified criteria. Additionally, the said project by Vedanta still needs a technology partner and a manufacturing-grade technology license to go ahead with the production of 28nm chips.
This could be a major blow to Vedanta, as it is already struggling to reduce its substantial debt burden.
Vedanta and Foxconn also known as Hon Hai Precision Industry Co Limited had made the announcement of a $19.5 billion investment for the establishment of semiconductor and display production plants in Gujarat in September last year. The project was expected to create over 1 lakh jobs and according to Agarwal would have been India’s first step towards creating its own Silicon Valley.
But the project is still struggling to find a technology partner and secure the necessary manufacturing-grade technology license.
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