Foxconn HCL partner to set up Semiconductor Testing Facility, investment worth $37.2 Million

Taiwan-based Foxconn has announced a partnership with tech firm HCL Group to establish a semiconductor assembly and testing facility in India. 

 

he joint venture will see the creation of an outsourced assembly and testing (OSAT) unit in the country.

 

OSAT plants play a crucial role in packaging, assembling, and testing foundry-made silicon wafers, transforming them into fully functional semiconductor chips.

 

According to a regulatory filing by Foxconn, its India unit will hold a 40% stake in the joint venture, making a significant investment of $37.2 million. 

 

On the other hand, HCL has not disclosed the financial details of its involvement.

 

The primary objective of this collaboration, as stated by Foxconn in a press release, is to establish an ecosystem and enhance supply chain resilience for the domestic industry.

 

The companies have not disclosed the exact locale of bethe proposed project at this time. Alongside this development, Foxconn is exploring the possibility of setting up a semiconductor fabrication plant in India.

 

The Indian government has offered $10 billion in incentives to encourage local chip manufacturing. Despite this positive initiative, Foxconn faced challenges in its semiconductor endeavours in India last year, marked by a high-profile split with local conglomerate Vedanta (VDAN.NS) in a $19.5 billion chipmaking joint venture.