India’s domestic chip plans have suffered one setback after another

According to the reference news network on June 1, quoting Reuters on May 31, three sources said that a consortium’s plan to spend $3 billion to build semiconductor facilities in India has stalled because Israeli chip manufacturer Tal Semiconductor, which is listed as a technology partner by the consortium, is being acquired by Intel Corp. The stagnation has scuppered India’s chipmaking plans.

According to reports, India expects its semiconductor market to be worth $63 billion by 2026. Last year, the country received three applications to build factories under a $10 billion incentive program. They come from the Vedanta-Foxconn joint venture, multinational consortium ISMC Corp., which counts Tal Semiconductor as a technology partner, and Singapore-based IGSS venture capital.

None of the three applications went well. ISMC’s $3 billion project stalled due to Intel’s acquisition of Tower Semiconductor last year. IGSS’s $3 billion plan has also been temporarily halted as it wants to resubmit its application. India has now re-invited companies to apply for the incentive scheme.

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Referring to India’s semiconductor ambitions, India’s Minister of State for Electronics and Information Technology, Rajiv Chandrasekhar, said in an interview with Reuters on May 19 that ISMC was “unable to move forward” because of Intel’s acquisition of Thar, while IGSS “wants to resubmit [its application].” “These two companies had to pull out,” he said, without elaborating.

According to the report, two of the sources said Tal may re-evaluate its participation in the joint venture depending on the outcome of the talks with Intel.

ISMC’s partner, Next Track Investments, did not respond to a request for comment, while Tal declined to comment. Intel also declined to comment.

The IGSS did not respond, nor did India’s information technology department. St declined to comment. David Reed, chief executive of the Vedanta-Foxconn joint venture, said in a statement that they had reached an agreement with a technology partner to transfer technology, but declined to comment further.