Foxconn, also known as Hon Hai Precision Industry, on Wednesday said it has struck strategic collaboration deal with HCL Group to establish a chip packaging and testing venture in India.
According to filings on the Taiwanese stock exchange, Foxconn Hon Hai Technology India Mega Development, a subsidiary of the Taiwanese giant, is set to invest USD 37.2 million, securing a 40 per cent stake in the joint venture.
This move marks Foxconn’s re-entry into the semiconductor sector in India after dissolving its previous joint venture with Vedanta for a chip fabrication unit last July. The new partnership with HCL Group signals Foxconn’s commitment to establishing a Micron-like chip packaging and testing facility in the country.
Foxconn, already renowned as the world’s largest assembler of iPhones, has been steadily expanding its operations in India, primarily driven by the China+1 strategy amid escalating US-China tensions. Currently serving as a contract manufacturing partner for Apple alongside Tata and Pegatron in India, Foxconn contributes to 68 per cent of the total iPhone production in the country.
In addition to the collaboration with HCL Group, Foxconn has submitted fresh applications to set up a semiconductor fabrication unit in India, leveraging the government’s Production Linked Incentive (PLI) scheme.
Foxconn’s recent investments in India extend beyond the semiconductor space. In November, the company announced a USD 1.6 billion investment as part of its China+1 strategy. Furthermore, for Apple products, Foxconn plans to inject Rs 8,800 crore in Karnataka to establish an iPhone component unit, with additional considerations for manufacturing iPhone accessories in Tumkur near Bengaluru.
