Team Blitz India
NEW DELHI: Foxconn Technology Group and HCL Group have announced plans to create a joint venture (JV) for a semiconductor unit in India. Foxconn is set to invest $37.2 million, securing a 40 per cent equity stake in the venture, according to a report by Mint and The Economic Times.
The move aims to establish a facility to contribute to India’s semiconductor industry and enhance supply chain resilience.
HCL Group views this collaboration as strategically aligned with its existing portfolio. The partnership will leverage Foxconn’s BOL (build-operate-localise) model, emphasising community support in establishing strong operations in India.
The announcement follows the recent revelation by Minister of State for Electronics and Information Technology, Rajeev Chandrasekhar that the government has received nine proposals for various semiconductor fabrication units and testing plants in India. The central government also announced a $10-billion production-linked incentive (PLI) scheme in 2021 to provide financial assistance to semiconductor manufacturers in India.
Micron Technology Inc. has already committed $825 million to its assembly, testing, monitoring, and packaging plans in the country. The Sanand unit of Micron is estimated to create 5,000 direct and 15,000 indirect employment opportunities in Gujarat over the next five years.
