Foxconn, HCL form joint venture for chip facility in India

Taiwanese chipmaker Foxconn has partnered with HCL Group to form a joint venture that will establish a semiconductor assemble and testing facility in India. Foxconn Hon Hai Technology India Mega Development, a unit of the Taiwanese contract manufacturer, would own a 40% stake in the JV with a $37.2 million investment, as per regulatory filing. 

“HCL Group plans to partner with Foxconn Group to establish OSAT (Outsourced semiconductor assembly and test)  operations in India. 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. More details will be shared at the appropriate time.” an HCL spokesperson said in a statement.

The Foxconn-HCL JV announcement comes after the much talked about Vedanta-Foxconn fell through last year. The Vedanta-Foxconn joint venture, also among the first entities to apply for the government’s $10 billion semiconductor incentive scheme, fell through this year. In July 2023, the Apple supplier pulled out of the $19.5 billion semiconductor joint venture and said it had ‘determined it will not move forward on the joint venture with Vedanta’.

Post-breakup, Foxconn submitted a new application to establish a semiconductor fab in India, while Vedanta awaits approval for its semiconductor and display fabrication plant, with talks underway for a tech partner.

In the last few months, several semiconductor companies have shown interest in establishing units in India, riding on the back of government’s $10 billion incentive scheme and the China+1 sentiment. Micron Technology, one of the world's top chipmakers, declared an $825 million investment in India for establishing a semiconductor assembly and testing plant. This announcement coincided with Prime Minister Narendra Modi's visit to the US, and construction for the $2.75 billion plant commenced in Gujarat’s Sanand in September. The company claims that it will roll out the first chip in December.