Foxconn has formed a joint venture with HCL Group to create semiconductor packaging and testing facilities in India to lessen its dependence on China.
The Taiwanese company’s affiliate, Foxconn Hon Hai Technology India Mega Development, would spend $37.2 million for a 40% stake, according to a stock exchange filing.
Foxconn’s first investment in India’s Outsourced Semiconductor Assembly and Test (OSAT) business. To improve local production for Apple and Xiaomi, the corporation will invest billions.
Foxconn and HCL are excited to launch OSAT operations in India. The partners hope to create an ecosystem and strengthen local industry supply chains with this investment. Foxconn told Eltrys it will use its BOL model to promote local communities.
Last November, Foxconn announced a $1.5 billion investment in India for “operational needs.” The business worked with Vedanta to build a $20 billion semiconductor plant in Gujarat, India. But it left the arrangement in July, saying it was “actively reviewing the landscape for optimal partners.”
Deputy IT Minister Rajeev Chandrashekhar told parliament that the firm applied again to build its semiconductor production plant later this year.
“HCL Group has a strong engineering and manufacturing heritage, and this opportunity benefits the Group portfolio strategically. This supports the Indian government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ goals, an HCL Group representative stated.
