Foxconn Invests $37 Million in Indian Chip Dream with HCL Partnership

Foxconn is set to collaborate with the HCL Group to establish a chip packaging and testing venture in India. In this strategic move, Foxconn Hon Hai Technology India Mega Development, a subsidiary of the Taiwanese contract manufacturer, will inject USD 37.2 million for a 40 percent ownership stake in the joint venture.

This initiative, focusing on outsourced semiconductor assembly and test (OSAT), follows Foxconn's decision to terminate a previous joint venture with India's Vedanta in July. The development aligns with Foxconn's recent application for establishing a semiconductor fabrication unit in India under the "modified scheme for setting up semiconductor fabs in India," a government initiative aimed at bolstering the country's electronics manufacturing sector, particularly in semiconductors. This move is in harmony with the 'Make in India' and 'Atmanirbhar Bharat' initiatives.

The Ministry of Electronics and Information Technology (MeitY) is currently scrutinizing Foxconn's application for the semiconductor factory in India. Foxconn, renowned as the assembler of iPhones, is actively expanding its presence in India, contributing a substantial 68 percent to the total production.

Recent reports indicate that Foxconn secured approval to invest an additional USD one billion in a new plant dedicated to manufacturing Apple products in India, a decision made in December 2023. This investment is an augmentation to the previously allocated USD 1.6 billion for the 300-acre site near Bengaluru's airport, with the majority of this cumulative investment directed towards Apple's operations in India.

News By Rahul Yelligetti