Taiwanese contract manufacturing giant Foxconn has announced a partnership with HCL Group to establish a chip packaging and testing venture in India. Foxconn Hon Hai Technology India Mega Development, a division of Foxconn, will invest $37.2 million for a 40% stake in the joint venture. The venture, referred to as OSAT (Outsourced Semiconductor Assembly and Test), follows Foxconn's decision to end a joint venture with Vedanta in July of the previous year. HCL Group had previously expressed its intention to establish an OSAT facility with the Karnataka state government.
This move aligns with Foxconn's efforts to diversify and expand its operations beyond China. The company has also submitted a new application for establishing a semiconductor fabrication unit in India under the government initiative known as the "modified scheme for setting up semiconductor facilities in India," aimed at fostering the electronics manufacturing sector, including semiconductors.
Government officials mentioned that the verification process for Foxconn's technology to manufacture semiconductors is currently underway. Simultaneously, Foxconn has received approval to invest at least $1 billion more in a plant in India dedicated to manufacturing Apple products, marking a significant step toward establishing a hub outside of China.
(With Agency Inputs)