India’s HCL Group and Taiwan’s Foxconn Technology Group have announced their plans to form a joint venture (JV) to establish a semiconductor outsourced assembly and testing (OSAT) unit in India. Under the partnership, Foxconn will hold a 40% equity share with an investment of $37.2 million. The JV aims to build an ecosystem and foster supply chain resilience for the domestic industry.
The decision to partner with Foxconn aligns with HCL Group’s strong engineering and manufacturing heritage and provides strategic adjacency to their portfolio. Foxconn, on the other hand, will deploy its BOL (build-operate-localize) model to support local communities. Both companies see this joint venture as an opportunity to leverage their respective strengths and contribute to the growth of the semiconductor industry in India.
The proposal for the JV is currently under consideration with the India Semiconductor Mission, according to a senior industry veteran familiar with the matter. Given HCL’s expertise in semiconductor design and testing software, as well as their existing partnerships with top chipmakers, teaming up with Foxconn is a logical move for both parties. However, the specific details of the project remain to be seen.
This partnership announcement follows the recent statement by India’s Minister of State for Electronics and Information Technology, Rajeev Chandrasekhar, that the government has received several proposals for setting up semiconductor fabrication units. While the minister did not disclose the names of the companies, the interest in semiconductor investments in India seems to be growing, with proposals for fab units, OSAT units, and compound fabs.
Foxconn’s previous plans to invest in a semiconductor fabrication unit in India fell through, leading both parties to pursue their own plans independently. But with Foxconn’s instrumentation expertise and the desire to diversify from contract manufacturing, this new partnership presents an opportunity for them to improve their margins and expand their presence in the semiconductor supply chain.
Overall, the establishment of the semiconductor OSAT unit in India by Foxconn and HCL Group signals a positive development for the country’s semiconductor industry. It will not only contribute to the growth of the domestic industry but also enhance the country’s standing in the global semiconductor market.
The source of the article is from the blog enp.gr