Vedanta's semiconductor plant in collaboration with Foxconn has been touted as a project which will transform the manufacturing of smartphones and laptops in India. But shortly after that Vedanta was hit by mounting debt and a setback to the chip factory, following reports that the government may deny funding for making 28 nanometer microchips.
Almost a month after that, Vedanta Foxconn has reportedly submitted a revised application to the government, for securing funds to manufacture 40 nanometer chips at the plant.
Apart from its debt woes, Vedanta is also facing trouble as Taiwan-based Foxconn is reportedly looking for new partners for the semiconductor plant.
It has been reported that the two firms had disagreements over changes to be made in the revised application, and Foxconn is also concerned about Vedanta's stability.
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Foxconn is said to have reached out to several firms including two major corporates in India, to replace Vedanta which has a 67 per cent share in the joint venture.
Although Vedanta has been able to cut its debt after raising funds by pledging equity, the firm hasn't been able to access private credit or financing from banks.
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