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NEW DELHI: Taiwanese contract manufacturer Foxconn has said that it is teaming up with HCL Group to start a chip packaging and testing venture in India.
According to a regulatory filing to Taiwan’s stock exchange, Foxconn Hon Hai Technology India Mega Development, a division of the Taiwanese giant, will invest $37.2 million for a 40% ownership in the joint venture.
The chip packaging and testing venture, called OSAT in industry parlance, comes after Foxconn abandoned a joint venture with Anil Agarwal-led Vedanta in July last year.
HCL Group had earlier announced that it was in active talks to establish an OSAT facility with the state government of Karnataka.
When contacted, a spokesperson for HCL said the company is moving ahead with a partnership with Foxconn for Outsourced Semiconductor Assembly and Test (OSAT). “HCL group has a strong engineering and manufacturing heritage and this is an opportunity that provides strategic adjacency to the group portfolio. This is line with government of India’s vision of ‘Make in India’ and ‘Atmanirbhar Bharat’ also.”
The development comes after Foxconn submitted a fresh application to establish a semiconductor fabrication unit in India under the “modified scheme for setting up semiconductor facilities in India” – a government initiative aimed at promoting the electronics manufacturing sector, including semiconductors.
Meanwhile, Foxconn will invest at least $1 billion more in a plant in India that will manufacture Apple products, a significant step towards its aim of establishing a hub outside of China.
According to a regulatory filing to Taiwan’s stock exchange, Foxconn Hon Hai Technology India Mega Development, a division of the Taiwanese giant, will invest $37.2 million for a 40% ownership in the joint venture.
The chip packaging and testing venture, called OSAT in industry parlance, comes after Foxconn abandoned a joint venture with Anil Agarwal-led Vedanta in July last year.
HCL Group had earlier announced that it was in active talks to establish an OSAT facility with the state government of Karnataka.
When contacted, a spokesperson for HCL said the company is moving ahead with a partnership with Foxconn for Outsourced Semiconductor Assembly and Test (OSAT). “HCL group has a strong engineering and manufacturing heritage and this is an opportunity that provides strategic adjacency to the group portfolio. This is line with government of India’s vision of ‘Make in India’ and ‘Atmanirbhar Bharat’ also.”
The development comes after Foxconn submitted a fresh application to establish a semiconductor fabrication unit in India under the “modified scheme for setting up semiconductor facilities in India” – a government initiative aimed at promoting the electronics manufacturing sector, including semiconductors.
Meanwhile, Foxconn will invest at least $1 billion more in a plant in India that will manufacture Apple products, a significant step towards its aim of establishing a hub outside of China.
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