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Foxconn Announces $37.2 Million Investment in Semiconductor Venture with India’s HCL Group

Foxconn (Hon Hai Precision Industry) to Acquire 40% Stake in Joint Venture, Fostering India's Semiconductor Industry
f 2317.TW Blue Chip 150 Tech 350
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Foxconn has taken a significant step forward in its semiconductor strategy by announcing a substantial investment of $37.2 million (approximately NT$1.17 billion) to establish a semiconductor packaging and testing plant in India. This initiative is part of a joint venture with the HCL Group, a major Indian conglomerate, reinforcing Hon Hai’s commitment to expanding its global semiconductor footprint.

The new joint venture, in which Hon Hai will acquire a 40% equity stake, marks a strategic move to develop a local semiconductor ecosystem in India. The name of the joint venture will be disclosed at a later date. Hon Hai’s participation in this venture is facilitated through its Indian subsidiary, Foxconn Hon Hai Technology India Mega Development Private Limited.

The collaboration with HCL aims to set up a professional packaging and testing foundry (OSAT) in India. This move is not just about establishing a presence in the semiconductor sector; it’s also about enhancing the resilience of India’s domestic industrial chain. Hon Hai intends to employ the Build and Operate Local (BOL) operating model to support local communities and contribute to the growth of the Indian semiconductor industry.

In a related development, Hon Hai also mentioned that its subsidiary Big Innovation Holdings Limited was initially set to invest $29.4 million (approximately NT$920 million) for a 40% stake in the venture. However, this investment entity was later changed to Foxconn Hon Hai Technology India Mega Development Private Limited, and the investment amount was revised to the current figure of $37.2 million.

This venture represents a significant step for Hon Hai in its global expansion and diversification efforts, particularly in the burgeoning semiconductor industry in India. It underscores the company’s strategy to not only grow its semiconductor capabilities but also to contribute to the development of local industries in key markets around the world.

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