Foxconn, the Taiwanese multinational, has recently announced a collaboration with India’s HCL Group to establish an outsourced assembly and testing unit (OSAT) dedicated to semiconductor chips, as per the reports released by both the companies. Together, Foxconn and HCL Group aim to pioneer a cutting-edge facility focused on the assembly and rigorous testing of semiconductor chips, underscoring their commitment to technological advancement and collaborative global innovation.
Foxconn, one of the global electronics manufacturing giants, operates in producing devices like iPhones and gaming consoles. With its headquarter in Taiwan, Foxconn operates a vast network of factories worldwide. On the other hand, HCL Group, an Indian conglomerate, spans diverse sectors, including IT services, healthcare, and infrastructure. HCL is known for its IT prowess, delivering technology solutions to a broad clientele.
As a component of the agreement, Foxconn Hon Hai Technology India Mega Development, a subsidiary under the umbrella of Foxconn, is set to establish a collaborative venture with HCL. This collaboration will involve a substantial investment of $37.2 million, leading to Foxconn acquiring a significant 40% stake in the venture. This significant development was officially disclosed in a filing submitted to the Taiwan Stock Exchange by Foxconn.
Foxconn Hon Hai Technology India Mega Development Private Limited, a subordinate entity under the umbrella of Hon Hai Technologies, has officially communicated this significant advancement to the Taiwanese stock exchanges. In response to this collaboration, the HCL Group has articulated that this partnership represents an auspicious prospect, offering strategic alignment within the expansive spectrum of the Group’s diverse portfolio.
HCL Group is also strategically positioning itself for this significant venture by announcing its intention to collaborate with Foxconn Group to set up OSAT (Outsourced Semiconductor Assembly and Test) operations within the Indian landscape. The decision stems from HCL Group’s robust legacy in engineering and manufacturing, aligning seamlessly with its existing portfolio.
In an official statement, a representative for HCL has expressed enthusiasm about this opportunity, emphasizing how it not only leverages the Group’s strong heritage but also presents a strategic adjacency that complements and enhances the overall business portfolio.
Foxconn is set to secure an approximate 40% ownership interest in the collaborative venture, committing a substantial investment of approximately $37.2 million. The remaining stake in this partnership will be held by HCL.
Notably, an OSAT unit, specializing in extending third-party services for the packaging and testing of chips, will be established. This unit aims to cater to the needs of semiconductor fabrication units, offering comprehensive solutions in chip processing and quality assurance.
