Foxconn, the Apple manufacturing partner, has formed a joint venture with Indian IT giant HCL Group to establish semiconductor packaging and testing operations in India. This move is part of Foxconn’s efforts to expand its presence in the South Asian nation and reduce its reliance on China. The joint venture, named Foxconn Hon Hai Technology India Mega Development, will see a $37.2 million investment from Foxconn for a 40% stake, as disclosed in a stock exchange filing.
Key Takeaway
Foxconn has partnered with HCL Group to invest in semiconductor packaging and testing operations in India, marking its first investment in OSAT operations in the country. This move is in line with Foxconn’s strategy to bolster its domestic manufacturing and reduce reliance on China.
Foxconn’s First Investment in OSAT Operations in India
This marks Foxconn’s initial investment in setting up Outsourced Semiconductor Assembly And Test (OSAT) operations in India. The company has committed to investing billions of dollars in the country to strengthen its domestic manufacturing for clients such as Apple and Xiaomi. Foxconn aims to deploy its BOL (build-operate-localize) model to support local communities through this partnership with HCL.
Foxconn’s Previous and Ongoing Commitments in India
In November of the previous year, Foxconn announced its plans to invest $1.5 billion in India to meet its operational requirements. Additionally, the company had partnered with local conglomerate Vedanta to establish a $20 billion semiconductor unit in the Indian state of Gujarat. Although it withdrew from the deal in July, Foxconn expressed its commitment to actively reviewing the landscape for optimal partners. Furthermore, the manufacturer submitted a fresh application to commence its semiconductor fabrication unit in the country later in the year, as confirmed by Deputy IT Minister Rajeev Chandrashekhar in the parliament.
HCL Group’s Perspective
An HCL Group spokesperson highlighted the strong engineering and manufacturing heritage of the group and emphasized that the joint venture with Foxconn aligns with the Government of India’s vision of ‘Make in India’ and ‘Atmanirbhar Bharat’.
