Foxconn To Expand Via India JV For Semiconductors
Image credit X.com @PiyushGoyal
Foxconn & HCL May Announce JV For Semiconductors
By Sanjay Singh
New Delhi, October 14: Foxconn will be investing up to INR 4.24 billion in its yet-to-be-named semiconductor joint venture (JV) with HCL. The iPhone contract manufacturer, Foxconn is investing up to INR 4.24 billion in its yet-to-be-named semiconductor joint venture (JV) with HCL for an Outsourced Semiconductor Assembly and Test plants (OSAT) plant in India. India is seeking foreign investments for its indigenous semiconductor industry.
Government is nudging industries to take stakes in the development and design of fabs, Assembly, Testing, Marking, and Packaging ATMP (Assembly, Testing, Marking, and Packaging), among others.
According to an official company note: “If the potential investment of no more than US$13,310,000 (approx. INR 1.12 billion) is included, the total accumulated holding will not exceed US$50,510,000 (approx. INR 4.24 billion) and the cumulative shareholding ratio will be adjusted based on the actual capital increase.”
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Prior to this, Foxconn had invested about Rs 2.46 billion in the JV via its subsidiary Big Innovation Holdings and further increased it to INR 3.12 billion through Foxconn Hon Hai Technology India Mega Development Private Limited. Foxconn has a 40 percent stake in its JV with HCL.
According to reports, Tata Electronics and PSMC have completed the technology transfer pact for fab unit in Gujarat. Tata Electronics has reached a definitive agreement with the Taiwanese foundry for the design and construction support to build India’s inaugural AI-enabled greenfield semiconductor fabrication plant.
Further, in order to ensure the effective transfer of technology to Tata’s fab unit, PSMC will license a broad portfolio of technologies, alongside providing engineering support. Tata’s Gujarat fab is set to manufacture chips for applications like power management IC, display drivers, microcontrollers (MCU), and high-performance computing logic. These chips will target demand in AI, automotive, computing, data storage, and wireless communication markets.
Tata Electronics is expanding its semiconductor manufacturing capabilities with two additional fabrication plants (fabs) in Dholera, Gujarat. The first fab, in partnership with Taiwan’s PSMC, is currently under construction, and will manufacture chips for sectors like automotive, AI, and wireless communication. It is expected to begin production in 2026, producing up to 50,000 wafers per month.Plans for the new – second and third fabs – to be built in the next five to seven years, are still evolving, with future partnerships and technology choices depending on market conditions.
Also Read: Decoding India’s semiconductor shortage
There are 12 India startup firms receiving financial assistance under the Design Linked Incentive (DLI) Scheme out of 59 applicants. Also, 21 applications are currently under review. The Indian government will launch the next phase of the India Semiconductor Mission within six months, India’s Electronics and Information Technology Minister Ashwini Vaishnaw said on September 17 this year.
A recently proposed US$10-billion joint semiconductor fab proposal by Israel’s Tower Semiconductor and India’s Adani Group is currently under review as part of the India Semiconductor Mission (ISM). While under consideration by MeitY, the previous week, the Maharashtra cabinet approved the establishment of a semiconductor fab unit in Panvel, near Mumbai, through a joint venture between the Adani Group and Tower Semiconductor.
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