Last Update: May 31, 2023, 3:42 PM IST
This decision will give a big blow to Vedanta.
The Indian government is set to deny significant funding to Anil Agarwal’s chip venture.
(Reuters) – The Indian government is set to deny significant funding to Anil Agarwal’s chip venture, Bloomberg News reported on Tuesday, dealing a blow to the billionaire’s ambition to create India’s ‘own Silicon Valley’.
Citing people familiar with the matter, the report said officials may inform the venture between Vedanta and Taiwan’s Foxconn that it will not get incentives for making 28-nanometer chips.
The report states that the undertaking’s application seeking billions in government aid does not meet the criteria set by the government. The project is still looking for a technology partner and a manufacturing-grade technology license to manufacture the 28nm chips.
Foxconn declined to comment on the report, while India’s technology ministry and Vedanta did not immediately respond to Reuters requests for comment.
The setback comes at a time when Agarwal’s metals and mining conglomerate is already struggling to bring down its significant debt load.
In September last year, Vedanta and Foxconn – formally Hon Hai Precision Industry Co Ltd – announced they would invest $19.5 billion to set up a semiconductor and demo production plant in the state of Gujarat, creating over 100,000 jobs .
Agarwal said last year after the announcement, “India’s own Silicon Valley is now one step closer.”
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,