Taiwan's Foxconn Technology Group and India's HCL Group have formalized their partnership to set up a joint venture dedicated to semiconductor Outsourced Assembly and Testing (OSAT). Foxconn will acquire a 40% equity share with a $37.2 million investment, as jointly announced by the two companies. An official from HCL Group expressed their intent to collaborate with Foxconn, emphasizing the strategic alignment with HCL's robust engineering and manufacturing background. The venture aims to establish OSAT operations in India, presenting a strategic expansion within the HCL Group's portfolio.

Foxconn's subsidiary, Foxconn Hon Hai Technology India Mega Development Pvt. Ltd, has informed the Taiwan Stock Exchange that the outlined joint venture (JV) with HCL Group is documented in a non-binding memorandum of understanding. Subsequent negotiations are expected to follow, with the proposal currently under evaluation by the India Semiconductor Mission, as revealed by a senior industry expert familiar with the situation.

Given HCL's longstanding expertise in semiconductor design, testing software, and existing collaborations with leading chipmakers, a partnership with Foxconn is seen as a logical move for both parties, according to industry insiders. The partnership announcement comes in the wake of a statement from Rajeev Chandrasekhar, the Minister of State for Electronics and Information Technology, who disclosed that the government has received nine proposals for establishing semiconductor fabrication units. These proposals include plans for facilities dedicated to testing semiconductors manufactured globally.

Chandrasekhar highlighted the increased interest in semiconductor investments, citing two serious fabrication proposals, four Outsourced Assembly and Testing (OSAT) proposals, and three compound fabrication proposals. While the minister did not disclose the names of the companies involved, he referred to the successful investment by US-based Micron Technology Inc. The latter had announced an $825 million investment in its assembly, testing, monitoring, and packaging (ATMP) plans in India. Construction of its first unit began in September, with plans to produce the first packaged chip by the end of the current year.