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The Foxconn-HCL joint venture (JV) has initiated talks with L&T and Taiwanese EPC giant CTCI for a potential partnership for its upcoming semiconductor manufacturing facility
Foxconn purchased a 40% stake in the JV with HCL Group for INR 312 Cr last year; it plans to invest INR 424 Cr for the joint semiconductor unit coming up in Uttar Pradesh
The Centre has approved 5 semiconductor-related projects worth $18 Bn, including from Tata Electronics, Micron Technology, Kaynes Semicon, among others
Taiwanese chipmaker Foxconn and HCL Group are potentially seeking an engineering, procurement and construction (EPC) partner for their joint semiconductor facility to be set up in Uttar Pradesh.
The Foxconn-HCL joint venture (JV) has initiated talks with Larsen & Toubro (L&T) and Taiwanese construction engineering company CTCI for its upcoming outsourced semiconductor assembly and testing (OSAT) facility, ET reported, citing sources.
Foxconn plans to invest INR 424 Cr in its semiconductor JV with HCL Group. The former purchased a 40% stake in the JV for INR 312 Cr last October.
The preliminary discussions were reportedly held in Gujarat when Bob Chen, the president of Foxconn’s semiconductor group, was visiting India. HCL Group roped in EPC partners L&T and CTCI as the JV is hoping to get the Cabinet’s nod for its semiconductor plant by the month-end.
Inc42 has reached out to Foxconn for comments on the development. The story will be updated upon receiving a response
Reports surfaced last year that the HCL-Foxconn semiconductor JV had been allotted a plot in the Yamuna Expressway Industrial Development Authority (YEIDA) region in Delhi NCR for its upcoming OSAT facility. However, recently it was reported that they have been allotted a new plot in the same region.
Foxconn Doubling Down On Investments In India
India is a significant revenue driver for Taiwanese contract manufacturer Foxconn. The company’s chairman Young Liu said last year that its business in India had surpassed $10 Bn. Foxconn had invested $1.4 Bn in India as of August 2024.
Foxconn already manufactures Apple iPhones in India and is considering establishing a new smartphone display module assembly unit in Tamil Nadu at a cost of nearly $1 Bn, along with plans to assemble Google Pixel phones in the country.
Another shot in the arm is the plan to set up an electric vehicle (EV) manufacturing facility in India, although a specific timeline has not been set. Last year, it was also reported that Foxconn is in talks with the Tamil Nadu government to expand its battery manufacturing business in India.
These strategic moves signal that Foxconn is expanding its smartphone business in India, while also aiming to dominate sectors such as EVs and semiconductors.
India’s Strategic Push To Become Semiconductor Manufacturing Hub
Favourable government policies, growing demand, low-cost production capabilities and partnerships with Western nations are helping India further its semiconductor manufacturing, packaging and design capabilities.
The Centre approved the Indian Semiconductor Mission with an outlay of $10 Bn in 2021 to attract global chipmakers. Under the initiative, the Union government provides 50% capital fiscal support for setting up semiconductor fabs, while the state government, where the plant is coming, offers incentives up to 20%.
The government’s policy push is already yielding results, with 5 semiconductor-related projects, involving a total investment of $18 Bn, currently underway. The projects include Tata Electronics’s $11 Bn semiconductor display fabrication unit coming up in Gujarat, which is set to become operational by 2026.
Micron Technology has also received approval from the government to set up a $2.75 Bn semiconductor assembly and test facility in Gujarat. It will roll out its first made-in-India chips this year.
The Centre has also greenlit Tata Electronics’s proposal to set up an OSAT facility in Assam, while Murugappa Group’s CG Power has received the approval to establish a semiconductor manufacturing facility in Gujarat. Mysore-based Kaynes Semicon is also setting up a semiconductor assembly unit in Gujarat with an initial investment of INR 3,307 Cr.
India’s electronics production is projected to reach $500 Bn by 2030, driven by rising demand, increasing investments in semiconductor manufacturing and favourable government policies such as PLI. The growing demand for AI and data centres is expected to further boost demand for chips.
Amid rising demand for consumer electronics devices in the country, at least seven semiconductor startups such as Mindgrove Technologies, FermionIC, and BigEndian Semiconductors raised over $28 Mn in funding last year, up from $5 Mn raised in 2023.
