Hon Hai Precision Industry Co., commonly known as Foxconn Technology Group internationally, has announced a new joint venture with India’s HCL Group, marking a significant move in the semiconductor sector. This partnership aims to establish a foothold in the burgeoning Indian semiconductor market, focusing on outsourced semiconductor assembly and test (OSAT) services.
Foxconn’s subsidiary, Foxconn Hon Hai Technology India Mega Development Private Ltd, has invested US$37.20 million, securing a 40 percent stake in this joint venture. As an OSAT service provider, the joint venture will specialize in packaging, assembling, and testing semiconductor wafers, transforming them into finished chips.
This collaboration aligns Foxconn, a major player in electronics assembly, with HCL, one of India’s leading software and engineering firms. Foxconn anticipates that this partnership will contribute to establishing a robust semiconductor ecosystem in India, enhancing supply chain resilience in the region.
Foxconn is committed to its build-operate-localize (BOL) business model, which supports local communities and aligns with India’s growing emphasis on technology and manufacturing self-reliance. Industry sources, as reported by the business news outlet Mint, highlight HCL’s long-standing expertise in semiconductor design and testing software, making this partnership mutually beneficial.
This joint venture comes after Foxconn’s decision in July last year to withdraw from a $19.5 billion project with the Vedanta Group, also aimed at semiconductor production in India. The dissolution of the previous joint venture was attributed to various challenges, including slow progress, technical partner absence, and government requirements for resubmitting applications for awards and subsidies.
Despite the setback with Vedanta, Foxconn’s Chairman Young Liu reiterated the company’s commitment to semiconductor investments in India. The new partnership with HCL represents a renewed effort by Foxconn to expand its semiconductor business, leveraging India’s potential as a key player in the global technology landscape. This move is expected to bolster India’s position in the semiconductor market and contribute to the diversification of the global semiconductor supply chain.
