Foxconn team up with India's HCL Group for a chip testing plant
Taiwanese electronics giant Foxconn is partnering with Indian technology company HCL Group to build a semiconductor assembly and testing plant in India.
The companies are looking to establish an outsourced assembly and testing (OSAT) operation in India. For those still unaware, an OSAT facility packages, assembles, and tests foundry-produced wafers before finishing them into completed chips.
In a regulatory filing, Foxconn says that its Indian subsidiary will on 40% in a new joint venture and that it will invest USD 37.2 million to make it happen. HCL has not, as pointed out by Reuters, disclosed its financial part in the JV.
"Through this investment, the partners aim to build an ecosystem and foster supply chain resilience for the domestic industry," Foxconn said in a statement, Reuters reports.
However, there are still some questions left unanswered, such as where in India the planned OSAT facility will be located and the timeframe of the project.
The Taiwanese electronics giant is already involved in another semiconductor project in India, a potential fabrication plant.
Foxconn’s partnership with Indian conglomerate Vedanta, which was supposed to result in a USD 19.5 billion chipmaking joint venture, fell through in the summer of 2023. Since then, Foxconn has been working with applications under India's Modified Programme for Semiconductors and Display Fab Ecosystem, a USD 10 billion initiative that provides incentives of up to 50% of capital expenditures for semiconductor and display production projects.