Foxconn to set up chip testing plant in India

It will partner with HCL Group to build an outsourced assembly and testing (OSAT) unit

FILE PHOTO: Foxconn’s factory in Sriperumbudur near Chennai in southern India (REUTERS/Nicky Loh/File Photo)

Pramod Thomas

TAIWAN’S Foxconn will partner with tech firm HCL Group for a semiconductor assembly and testing facility in India, the companies said on Thursday (18).

The firms will set up an outsourced assembly and testing (OSAT) unit in the south Asian nation.

An OSAT plant packages, assembles and tests foundry-made silicon wafers, turning them into finished semiconductor chips.

Foxconn said in a regulatory filing that its India unit will own a 40 per cent stake in the joint venture with a $37.2 million investment. HCL did not disclose financial details from its side.

“Through this investment, the partners aim to build an ecosystem and foster supply chain resilience for the domestic industry,” Foxconn said in a statement.

The companies did not disclose the location of the proposed project.

Foxconn is also looking to set up a semiconductor fabrication plant in India, where the government has offered $10 billion in incentives to start local chip manufacturing.

The Taiwanese firm, however, had a bumpy start to its semiconductor foray in India last year after a high-profile split with local conglomerate Vedanta on a $19.5bn chipmaking joint venture.