Foxconn, a Taiwanese electronics manufacturer, has announced plans to invest up to Rs 424 crore in a semiconductor joint venture (JV) with HCL Group. The company recently purchased a 40% stake in the JV for approximately Rs 312 crore, according to an official statement. If an additional investment of around Rs 112 crore is made, the total holding could reach Rs 424 crore.
The joint venture, which is focused on the semiconductor sector, is expected to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in India, according to sources familiar with the project. The exact name of the JV has not yet been disclosed.
Foxconn initially invested Rs 246 crore in the venture through its subsidiary Big Innovation Holdings and subsequently increased its stake with an additional Rs 312 crore through Foxconn Hon Hai Technology India Mega Development Private Limited.
As of August 2024, Foxconn has invested over USD 1.4 billion in India, with its business in the country growing to USD 10 billion. The company currently employs over 48,000 people in India and is engaged in various manufacturing sectors, including iPhone production.
In addition to its semiconductor venture, Foxconn is expanding its presence in India by establishing a major manufacturing facility in Karnataka. The project, with an estimated investment of Rs 22,000 crore, will cover 300 acres of land in the ITIR Industrial Area in Bengaluru Rural District and is expected to create over 50,000 jobs. The company is also exploring opportunities in electric vehicle and battery manufacturing in India.