Foxconn, a key manufacturing partner of Apple, has entered into 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 strategy to expand its presence in India and reduce reliance on China. In a stock exchange filing, Foxconn’s subsidiary, Foxconn Hon Hai Technology India Mega Development, revealed a $37.2 million investment for a 40% stake in the venture.
This marks Foxconn’s first step into setting up Outsourced Semiconductor Assembly And Test (OSAT) operations in India, as the company commits to investing significantly in the country to strengthen its domestic manufacturing capabilities, serving clients like Apple and Xiaomi.
In a statement, Foxconn expressed its eagerness to collaborate with HCL to establish OSAT operations in India, with a focus on building an ecosystem and enhancing supply chain resilience for the domestic industry. The company plans to utilise its “build-operate-localise” (BOL) model to support local communities.
Foxconn’s investment plans in India have been notable. Last November, the company announced a $1.5 billion investment in the country to meet its operational requirements. Additionally, Foxconn had partnered with local conglomerate Vedanta for a $20 billion semiconductor unit in Gujarat, although it withdrew from the deal in July but expressed ongoing interest in finding optimal partners.
Foxconn also submitted a new application to initiate its semiconductor fabrication unit in India later in the year, as confirmed by Deputy IT Minister Rajeev Chandrashekhar in parliament.
HCL Group, on the other hand, views this collaboration as strategically aligned with the Indian government’s vision of “Make in India” and “Atmanirbhar Bharat” (self-reliant India). The group brings its strong engineering and manufacturing heritage to this opportunity, which complements its existing portfolio.
