People in the know say that natural resources conglomerate Vedanta Group and Taiwanese electronics contract manufacturer Foxconn have each submitted separate applications to the government to set up semiconductor fabrication units in India.

According to the sources, both companies have submitted information about their proposed technology partners as well as funding for the proposed chip fabrication units. According to an official, the government is currently reviewing their proposals and is in "dialogue" with them to tie up loose ends.

Earlier in the day, Bloomberg reported that Foxconn had partnered with European firm STMicroelectronics NV in a bid to build an Indian semiconductor factory. According to the report, the collaboration will result in the establishment of a 40nm chip plant.

Previously, the Vedanta Group and Foxconn formed a joint venture, Vedanta Foxconn Semiconductors Ltd, to establish a chip fabrication unit in Gujarat. Foxconn left the joint venture nearly a year after it was announced, but said it remained committed to establishing a chip fabrication unit in India.

The Foxconn-Vedanta joint venture was one of the first few participants in the government's strategically important India Semiconductor Mission, which was announced in February 2022. The partnership between the two companies was reported to be on the rocks in June of this year after Foxconn expressed concerns about the Vedanta Group's financial viability.