Taiwan’s contract manufacturer to the stars, Foxconn aka Hon Hai Technology Group , has teamed with India’s HCL Group to create a semiconductor assembly and testing facility in India.

“Foxconn looks forward to jointly setting up [Outsourced Semiconductor Assembly and Test] OSAT operations in India with HCL. Through this investment, the partners aim to build an ecosystem and foster supply chain resilience for the domestic industry. Foxconn will deploy its BOL, or build-operate-localize, model to support local communities,” read a Foxconn statement.

OSAT facilities typically package, assemble and tests wafers. The joint project will be Foxconn’s first India-based OSAT.

According to a Taiwan Stock Exchange regulatory filing, Foxconn’s India unit will pay $37.2 million to own a 40 percent stake in the joint venture.

India has in recent years lured more of the semiconductor industry, and tech industry at large, to its shores using tools like the $10 billion India Semiconductor Mission (ISM) to attract OSATs, fabs and other chip-related endeavors.

Foxconn has been amenable to India’s offers, promising to expand in the nation to diversify away from China.

Things have not always gone 100 percent to plan. Foxconn backed out of a $19.5 billion semiconductor and display joint venture with Indian mining and power generation company Vedanta and also saw itself slapped with a tax audit from Beijing last October.

HCL Group has also reportedly applied for India’ subsidies under the country’s Scheme for Compound Semiconductors, where subsidiary HCL Technologies will assist in chip processing. According to an exec in March 2023, HCL Technologies plans to double its semiconductor business over three to four years 2023.

At the time, HCL Group planned a chip wafer fabrication unit for 65 nanometre nodes.

The Reg has asked HCL Group and Foxconn for further details and will update this story if a substantial reply materializes. ®

https://www.theregister.com//2024/01/19/foxconn_hcl_india_osat/