September 16, 2024 /SemiMedia/ — Foxconn is partnering with IT services giant HCL Group to establish an outsourced semiconductor assembly and test (OSAT) facility near the upcoming Jewar Airport in Noida, Uttar Pradesh, India. According to sources, the joint venture has secured approximately 30 acres of land for the project, with Foxconn expected to invest $37.2 million for a 40% stake.

If approved by the Indian central government, the project would be the first of its kind in Uttar Pradesh. HCL Group, headquartered in Noida, prefers the state due to its strong local presence, which is expected to facilitate smoother management and operations.

Industry experts see Uttar Pradesh as an ideal location for the Foxconn-HCL venture.

Prabhu Ram, Vice President at CyberMedia Research, highlighted the state’s attractive incentives, including capital and interest subsidies, along with land and infrastructure support, making it a compelling destination for OSAT investments. He noted that Uttar Pradesh has the potential to become a leading hub for semiconductor manufacturing.

At the Semicon India 2024 opening ceremony, Uttar Pradesh Chief Minister Yogi Adityanath stated that over 55% of India’s mobile phones and more than half of its mobile components are currently manufactured in the state, underscoring its status as an electronics manufacturing center.

The HCL-Foxconn joint venture is still awaiting approval from the India Semiconductor Mission (ISM). According to sources, ISM has requested the submission of technical documentation or agreements related to OSAT technology, with approvals expected within two to three weeks following submission.

The HCL-Foxconn partnership was announced earlier this year with a planned investment between $100 million and $150 million for the OSAT facility. This move comes less than a year after Foxconn exited a $19.5 billion semiconductor joint venture with Vedanta in India.