Of the two partners, Foxconn is responsible for bringing in technology partners, and the JV will enable more licences as needed, said Akarsh Hebbar, managing director of the company’s global display and semiconductor business.
“There will be a bunch of technology. Most of it is in Foxconn and we will start enabling more licenses as needed. We do not believe we need a third equity partner as much as we need parts. Whatever help we need from others, we will add to that,” Hebbar said.
Vedanta will be taking the lead on the construction of the factory in Gujarat. The company intends to start generating revenue from the semiconductor unit by 2027, he said.
With Foxconn taking the lead on bringing in technology partners, the JV has full access to a “world-class manufacturable, high-volume, automotive-grade technology”, Vedanta Foxconn Semiconductors chief executive David Reed said.
“The intent is to reduce the risk with this technology from Foxconn. The other part of reducing the risk is Foxconn has experience with these large mega projects … building an ecosystem, not only the infrastructure, the supplier but also the social side,” Reed said.
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The plan is to start manufacturing chips of 40 nm (nanometres) on a factory line with a capacity of 40,000 wafers per month. The pilot for the project will start with 5,000 wafers per month, which will then be grown slowly to the maximum capacity of 40,000 wafers, Reed said, adding that the Vedanta-Foxconn combine would then start manufacturing the 28 nm chips.The Vedanta-Foxconn consortium is one of the five applicants seeking government incentives under a $10-billion package announced in December 2021 to promote domestic semiconductor manufacturing. The government is committed to footing 50% of the project cost, along with providing other incentives.
Vedanta, which has tied up with iPhone’s contract manufacturer Foxconn to set up the semiconductor manufacturing unit at Dholera in Gujarat, has announced plans to invest up to Rs 66,000 crore in the facility. Overall, the Vedanta-Foxconn JV had announced it will invest Rs 1.54 lakh crore, in a 63:37 ratio, to set up display and semiconductor fabrication units.
