Vedanta-Foxconn, the semiconductor consortium that is planning to commence chip making in India, is facing a delay; lack of agreement on matters such as technology transfer, duration of the partnership and funds to be invested has caused talks with STMicroelectronics, their proposed technology partner, to become stuck. STMicroelectronics is eager to limit the scope of technology transfer and find a sunset clause for their joint venture. Their investment in this venture is also yet to be agreed upon.  

Vedanta-Foxconn are among the five applicants applying for government incentives, under India’s $10 billion package, to promote domestic semiconductor manufacturing. They plan to invest Rs 66,000 crore to initiate manufacturing of chips with a range of 28nm and lesser.