The joint venture between Taiwan’s Foxconn and India’s HCL Group has secured approximately 30 acres of land near the upcoming Jewar airport in Noida, Uttar Pradesh, to establish a semiconductor outsourced assembly and testing (OSAT) unit.
The project, located in the Yamuna Expressway Industrial Development Authority (YEIDA) region, is awaiting central government approval and would be the first of its kind in Uttar Pradesh, according to sources familiar with the matter.
Foxconn is expected to invest $37.2 million in the venture, holding a 40% equity stake, while HCL, the majority partner, chose Uttar Pradesh as the site for the unit due to its Noida headquarters and strong local presence.
Tata Group is set to establish an OSAT (Outsourced Semiconductor Assembly and Test) facility in Assam, while its semiconductor chip fabrication unit is planned for Gujarat. Gujarat has also attracted CG Power’s OSAT facility, Micron’s packaging unit, and most recently, the Kaynes Semicon investment. Industry experts consider Uttar Pradesh (UP) the “ideal choice” for HCL and Foxconn to set up operations.
“Generous government incentives in UP, including substantial capital and interest subsidies, along with land and infrastructure support, make it a highly attractive destination for OSAT investments,” said Prabhu Ram, Vice President at CyberMedia Research.
He further emphasized that the state is “well-positioned to become a leading hub for semiconductor manufacturing.” During the inaugural session of Semicon India 2024, UP Chief Minister Yogi Adityanath highlighted that mobile manufacturing units in the state are now producing over 55% of India’s mobiles and more than half of all mobile components.
The HCL Group-Foxconn joint venture is awaiting approval from the India Semiconductor Mission (ISM). “ISM has requested both companies to submit a technology document or technical agreement for OSAT, which they are currently working on,” a source revealed.
Once submitted, approval is expected within two to three weeks. According to the source, “ISM has indicated that this is more of a formality, and the approval is likely to be granted promptly.” In January, HCL Group and Foxconn had announced their JV to establish an OSAT unit in India, with an estimated investment between $100 million and $150 million. Foxconn’s collaboration with HCL came shortly after it withdrew from a $19.5 billion semiconductor JV with Vedanta.
