Uttar Pradesh to have Foxconn-HCL joint venture semiconductor assembly plant

The semiconductor industry is the backbone of modern technology, powering everything from smartphones to advanced computing systems. As India continues to position itself as a global hub for technology and innovation, the semiconductor sector is gaining significant traction. Recent developments include a proposed Semiconductor Assembly Plant by the HCL Group of India and Foxconn Technology Group of Taiwan, highlighting the sector’s growth potential. Here’s a look at some of the top semiconductor stocks in India that are shaping the future of this critical industry.

Foxconn, which invested $37.2 million in the joint venture, will own a 40 percent interest, according to Livemint. “HCL Group plans to partner with Foxconn Group to establish OSAT operations in India. HCL Group has a strong engineering and manufacturing heritage and this is an opportunity that provides strategic adjacency to the Group portfolio,” an HCL Group spokesperson was quoted as saying in the Livemint report in response to queries.

The report further quoted a Foxconn spokesperson as saying that through this investment, both the companies “aim to build an ecosystem and foster supply chain resilience for the domestic industry”.

“Foxconn looks forward to jointly setting up OSAT operations in India with HCL,” the Foxconn spokesperson said, adding that the company will deploy its build-operate-localize (BOL) model to support local communities.

The Taiwan Stock Exchange was allegedly notified on Wednesday by Foxconn Hon Hai Technology India Mega Development Pvt. Ltd, a subsidiary of Foxconn Technology Group, that the JV was a non-binding memorandum of agreement and that discussions will take place after.

According to persons with knowledge of the situation, the Economic Times said that the businesses want to establish the OSAT facility in Uttar Pradesh, as the state government has allocated around thirty acres of land for the plant, close to the planned Jewar airport in Noida.

They said that if the proposed plant, which is situated in the Yamuna Expressway Industrial Development Authority (YEIDA) zone, is approved by the central government, it will be the first of its kind to be developed in Uttar Pradesh.

“HCL said it prefers UP as its headquarters is located in Noida and it will have a strong home base advantage. (It) emphasised that it has a strong footing in the state and the familiarity would make it smoother to manage,” ET quoted one of the persons aware of the matter as saying.

This happens one day after Rajeev Chandrasekhar, the minister of state for electronics and information technology, stated that the government has received nine proposals so far for the establishment of various semiconductor fabrication units and plants that will test semiconductors that are manufactured overseas.

“After Micron’s successful investment, there has been an extremely robust pipeline of proposals that have come. There’s a lot more interest. There are two very serious fab proposals, four OSAT proposals and three compound fab proposals,” he said on Tuesday while briefing on the National Startup Day. The names of the businesses that made bids were withheld by the ministry.

The US-based company Micron Technologies had previously said that it will invest $825 million toward its assembly, testing, monitoring, and packaging (ATMP) plans in India. Work on the projects started in September of last year, and the company intended to produce its first packaged chip by the end of the year.

You might also be interested in –Government bans 156 medications including antibiotics, painkillers and multivitamins