Foxconn to Setup its First Semiconductor Assembling Facility in India

Taiwan's Foxconn will partner with tech firm HCL Group for a semiconductor assembly and testing facility in India, the companies said on Jan 18. The firms will set up an outsourced assembly and testing (OSAT) unit in the South Asian nation.

An OSAT plant packages, assembles, and tests foundry-made silicon wafers, turning them into finished semiconductor chips. Foxconn said in a regulatory filing that its India unit will own a 40 per cent stake in the joint venture with a $37.2 million investment. HCL did not disclose financial details from its side.

"Through this investment, the partners aim to build an ecosystem and foster supply chain resilience for the domestic industry," Foxconn said in a statement.

The companies did not disclose the location of the proposed project. Foxconn is also looking to set up a semiconductor fabrication plant in India, where the government has offered $10 billion in incentives to start local chip manufacturing.

The Taiwanese firm, however, had a bumpy start to its semiconductor foray in India last year after a high-profile split with local conglomerate Vedanta on a $19.5 billion chipmaking joint venture.