Foxconn to invest $50 million in India in chip JV with HCL
The Taiwanese electronics manufacturing giant has purchased a 40% stake in a semiconductor JV for USD 37 million.
Apple supplier Foxconn will invest up to ₹4.24 billion (around USD 50.5 million) in a semiconductor joint venture (JV) it has set up with India’s HCL Group, according to a report by Indian news agency PTI.
The Taiwanese electronics manufacturing giant has purchased a 40% stake in a semiconductor JV for about ₹3.12 billion (approximately USD 37 million).
“If the potential investment of no more than USD 13,310,000 (about ₹1.12 billion ) is included, the total accumulated holding will not exceed USD 50,510,000 (about ₹4.24 billion) and the cumulative shareholding ratio will be adjusted based on the actual capital increase,” the company said in a note on investment in the JV unit.
The investment is believed to be for the Foxconn-HCL OSAT unit to be set up in India.
The iPhone contract manufacturer had earlier invested about ₹2.46 billion in the JV through its subsidiary Big Innovation Holdings and further increased the investment amount to ₹3.12 billion through Foxconn Hon Hai Technology India Mega Development Private Limited.
The company has invested over USD 1.4 billion in India as of August 2024, and its business in India has grown to USD 10 billion.
Foxconn is already engaged in manufacturing iPhones in India and gradually ramping up investments in the country by setting up another mega unit in the southern state of Karnataka. It also plans to set up an EV and a battery manufacturing facility in India.
In August, Foxconn beat expectations with a 6% increase in quarterly net profit on the back of a boom in demand for AI servers. Its net profit for the April-June quarter increased to T$35.05 billion ($1.09 billion) from T$33 billion in the same period last year, exceeding analysts’ average estimate of T$34.29 billion.
