Responding to reports of the Indian government planning to deny crucial funding for Anil Agarwal's chip venture Union Minister of State for Electronics and Information Technology Rajeev Chandrasekhar has said that there is no communication from Govt that we are not pursuing Vedanta's 28nm fab proposal.

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The minister told CNBC-TV18 that Vedanta is trying to locate technology for a 28nm fab, still a work in progress.

Earlier he tweeted today that India will start accepting and considering new applications for fabrication plants from new and existing applicants under the India Semiconductor Mission.

We are now reopening the window for semiconductors, open indefinitely. We are allowing existing applicants to re-apply for more mature nodes. We are opening up a fresh window for applications, he said.

Also read: Government yet to finalise candidates for semiconductor PLI scheme

He also mentioned that Vedanta had applied for 28nm, Vedanta is now more interested in pursuing 40nm nodes with the technology that they have and hence if Vedanta has access to 40nm technology the company can apply again under the new window.

About opening the window again he mentioned that it is being done because the earlier window was open only for 45 days, now there is renewed interest.

Further, he also added that there is no rejection of any proposal at this stage.

The first window for more expensive 28-nanometer fabrication plants was kept open for 45 days only in January 2022 and received three applications that were evaluated by India Semiconductor Mission and its Advisory group.

The government's strategy now is to encourage mature nodes of more than 40 nanometers, Chandrasekhar said. For this, the current and new players may apply afresh in various nodes where they have the technology. There is an expectation that some of the current applicants will reapply and new fresh investors shall also apply.

Also read: India to consider new semiconductor applications to attract global chip makers

The government seeks to attract more big-ticket investments under a $10 billion incentive plan for chip and display production, aiming to make India a key player in the global supply chain. The government had earlier said that it will provide financial support for new semiconductor facilities to cover 50 percent of project costs and shall remove a ceiling for maximum permitted investment for display manufacturing.

Last year, Anil Aggarwal announced Vedanta's ambitious plans to build 28 nanometer chips in India in a partnership with Hon Hai, widely known as Foxconn. This will build India’s “own Silicon Valley”, Anil Aggarwal said

Also read: Vedanta promoter pledges 4.4% equity to borrow $250 million from Glencore

First Published:May 31, 2023 1:59 PM IST