Foxconn, the world's largest contract electronics manufacturer, has announced a partnership with Indian multinational information technology consulting firm, HCL Group, to establish a semiconductor assembly and testing facility in India.
The plan is to establish an outsourced assembly and testing (OSAT) unit in a (currently) unknown location. An OSAT plant packages, assembles, and tests foundry-produced silicon wafers before converting them into finished semiconductor chips.
According to reports, Foxconn's India unit will own a 40% stake in the joint venture after investing USD 37.2 million. The extent of HCL's financial involvement has not yet been announced.
Foxconn has already announced several plans for India, including major investments in Karnataka to manufacture iPhone casing components and chip-making equipment.
However, the Taiwanese company struggled to launch an earlier semiconductor initiative in India last year. According to previous reports, Foxconn exited a USD 19.5 billion semiconductor joint venture with Indian conglomerate, Vedanta, in July 2023.
In 2022, the two companies agreed to establish semiconductor and display production plants in Gujarat. Foxconn stated that it had collaborated with Vedanta on the initiative for more than a year, but the prospective partners decided to terminate the joint venture for reasons that were not disclosed. Vedanta now fully owns the venture.
