Vedanta-Foxconn chip plant may get nod first

ISMC may revise its application while IGSS is almost out of the race

- Gulveen Aulakh

Only one of the three semiconductor manufacturing proposals submitted to secure financial support under India's $10 billion incentive scheme is likely to make the cut, a top official familiar with the development said.

The Vedanta-Foxconn joint venture's $20 billion proposal in Gujarat is expected to be the first to secure government approval, while the other two, submitted by the International Semiconductor Consortium (ISMC) and Singapore's IGSS Ventures, lag behind, with the latter one almost out of the race.

"All three proposals are being evaluated, and all have got some questions that have been asked by the advisory committee and the India Semiconductor Mission. At least, one of the three, IGSS from Singapore, is clearly not meeting the cut, and they're not responding to the questions that we are asking," the official said, asking not to be named since the evaluation of the proposals was not public.

He said the criterion that the applicant has production-worthy licensing of technology was not being met.

"The other two are in the run, but in the process, between the two, because Vedanta-Foxconn is talking about technology, technology sourcing and licensing, which is a little bit more credible than the ISMC proposal, they're being ranked higher, as of today," the official added.

India is offering a range of financial incentives and other measures, such as infrastructure development and streamlined regulations, to entice global companies to establish semiconductor fabs in the country amid competition from China, Taiwan, and South Korea in attracting investments.