Foxconn seeks bids for Indian Chip plant Construction, Allocates Rs 1,200 Crore
Foxconn, a major electronics manufacturer from Taiwan, has allegedly requested bids for the establishment of a semiconductor assembly and testing facility in India. The proposed plant is planned to be developed in collaboration with the HCL Group. The company has pledged an initial investment of Rs 1,200 crore for this venture. According to the company's statement, Foxconn is announcing on behalf of its subsidiary, Foxconn Hon Hai Technology India Mega Development Pvt Ltd, to seek partners for construction on their owned land.
In the preceding month, Foxconn Hon Hai Technology India Mega Development Pvt Ltd earmarked $37.2 million, approximately equivalent to Rs 308 crore, to establish the joint venture. The venture aims to establish an outsourced assembly and testing (OSAT) unit, with an anticipated investment ranging between $100-150 million. OSAT units offer third-party chip packaging and testing services to semiconductor fabrication facilities. Both fabless and fab companies engage these units to outsource such services, aiming to reduce expenses.
Foxconn intends to invest $37.2 million to secure a 40 percent stake in the joint venture through its subsidiary, Foxconn Hon Hai Technology India Mega Development. This marks the Taiwanese company's initial venture into the Indian semiconductor landscape. Previously, Foxconn's collaboration with the Anil Agarwal-led Vedanta Group concluded last year, as both parties decided to part ways. In individual statements, both Vedanta and Foxconn declared plans to establish their own chip plants in India.
