NEW DELHI: Taiwanese electronic manufacturer Foxconn on Wednesday said it is partnering with HCL Group to start a chip packaging and testing unit in the country.
The company, in an exchange filing in Taiwan, said it will invest $37.2 million for a 40% stake in the joint venture. Meanwhile, the technology giant said it has a strong engineering and manufacturing heritage, and this is an opportunity that provides strategic adjacency to the group portfolio.
“HCL Group plans to partner with Foxconn Group to establish OSAT (outsourced semiconductor assembly and test) operations in India. HCL Group has a strong engineering and manufacturing heritage, and this is an opportunity that provides strategic adjacency to the group portfolio. This is in line with the Government of India’s vision of ‘Make in India’ and ‘Atmanirbhar Bharat’ as well. More details will be shared at the appropriate time,” said an HCL spokesperson.
This is the second venture of Foxconn, also known as Hon Hai Precision Industry, in the semiconductor sector with an Indian company. Earlier, the company, with a joint venture with Vedanta Limited, applied for the incentive in fab manufacturing. Later, both Vedanta and Foxconn mutually exited the partnership and pledged to apply separately.
In December 2021, India had announced a $10 billion semiconductor incentive program to invite companies to start chip manufacturing in the country. In 2023, the US-based Micron Technology pledged to invest $825 million to set up its semiconductor assembly and test plant in Gujarat.
In December 2023, Minister of State for Electronics and IT Rajeev Chandrasekhar in Lok Sabha said Foxconn has submitted an application for setting up a semiconductor factory in the country. “Foxconn has submitted its application under the modified scheme for setting up semiconductor fabs in India for the establishment of semiconductor fabs in the country,” Chandrasekhar said.
Foxconn, known as the iPhone assembler, is expanding its base in India due to geopolitical tensions. The company has been India’s leading manufacturer of iPhones, contributing 68% of total production, followed by Pegatron at 18% and Wistron (Now taken over by Tata) at 14%.