Foxconn and HCL Group Form Partnership for Chip Packaging and Testing Venture

Foxconn and HCL Group have joined forces to establish a chip packaging and testing venture in India, representing a significant collaboration aimed at advancing semiconductor capabilities in the country. Foxconn is set to invest $37.2 million, securing a 40% stake in the new venture, known as OSAT (outsourced semiconductor assembly and test) in industry terms. This strategic partnership follows Foxconn’s termination of a joint venture with Vedanta in July. The substantial investment underscores Foxconn’s commitment to strengthening semiconductor capabilities in India and contributing to the country’s growing tech ecosystem. The joint venture is expected to play a pivotal role in advancing chip packaging and testing capabilities, aligning with Foxconn’s global expansion efforts and strategic initiatives. Foxconn, a Taiwanese manufacturer, has also applied to establish a semiconductor fabrication unit in India under the PLI (Production-Linked Incentive) scheme. This move reflects Foxconn’s strategic efforts to contribute to India’s semiconductor ecosystem and leverage the benefits of the PLI scheme. Currently, Foxconn is primarily engaged in iPhone manufacturing in India, aligning with a broader industry trend of diversifying supply chains amid geopolitical tensions. The collaboration with Tata and Pegatron positions Foxconn as Apple’s key contract manufacturing partner in India, contributing significantly to iPhone production. In November, Foxconn announced an additional investment of $1.6 billion as part of its China+1 strategy. While specific investment details remain undisclosed, Apple is expected to invest Rs 8,800 crore in Karnataka to establish an iPhone component unit, generating 14,000 job opportunities. Apple’s exploration of additional locations in Tumakuru city underscores its commitment to expanding manufacturing capabilities in India.