The land is situated near the upcoming airport in Jewar in Noida, Uttar Pradesh, according to individuals familiar with the matter.
Sources told ET that if the proposed unit, which is located in the YEIDA region, receives approval from the central government, it will be the first project of its kind in Uttar Pradesh.
In the joint venture, Foxconn holds a 40% equity stake and is expected to invest $37.2 million. The majority partner, HCL Group, has been given the authority to choose the location of the unit.
Foxconn-HCL chip JV plans
One of the individuals cited above said, “HCL said it prefers UP as its headquarters is located in Noida and it will have a strong home base advantage. (It) emphasized that it has a strong footing in the state and the familiarity would make it smoother to manage.”
Industry experts believe that UP is the perfect location for HCL and Foxconn to set up their operations.
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Prabhu Ram, vice president at CyberMedia Research, was quoted as saying, “UP government incentives, including substantial capital and interest subsidies, along with land and infrastructure support, make it a highly attractive destination for OSAT investments.” He also added that the state is well-equipped to become a prominent hub for semiconductor manufacturing.
during the opening session of Semicon India 2024UP Chief Minister Yogi Adityanath highlighted that mobile manufacturing units in his state are currently producing more than 55% of mobiles and over half of all mobile components made in India.
The HCL Group-Foxconn The joint venture is currently awaiting approval from the India Semiconductor Mission (ISM).
A source revealed that “ISM asked both the companies to submit a technology document or technical agreement for OSAT which both the partners are currently working on.” The approval is expected to come within two to three weeks after the submission of the document, which ISM considers more of a formality.
In January, HCL Group and Foxconn announced their JV to establish an OSAT unit in India, with sources indicating that the total investment could range between $100 million and $150 million. This partnership came after Foxconn withdrew from its $19.5 billion JV with Vedanta to manufacture semiconductors in India.
Meanwhile, the Tata Group is set to establish an OSAT facility in Assam, while their semiconductor chip fabrication unit will be located in Gujarat. The western state has also attracted investments from CG Power, Micron, and Kaynes Semicon for their respective OSAT, packaging, and semiconductor facilities.
