Viceroy Research and Vedanta Battle Heats Up with spotlight on Vedanta Semiconductor allegations

US-based short seller Viceroy Research has accused

semiconductor venture of being a “₹2,500 crore sham,” alleging the project lacks real capacity and has not produced any actual semiconductors despite substantial investment claims. Vedanta has dismissed the allegations as “baseless, motivated, and malicious,” maintaining that its semiconductor project in Gujarat is legitimate and part of India’s broader ambitions to become a semiconductor hub. The controversy centers on Vedanta’s claimed ₹2,500 crore investment in partnership with Foxconn; Viceroy questions the authenticity and output of the venture after Foxconn exited the joint project in 2023. In light of the allegations, Viceroy has called on India’s regulators and government to closely examine Vedanta’s project funding, actual progress, and public claims about semiconductor chip production. The dispute casts a shadow on India's drive to join the global semiconductor supply chain, underscoring risks of greenwashing or misrepresentation as domestic players race to attract government incentives and global partners.