The land is located near the upcoming Jewar airport in Noida, Uttar Pradesh, in accordance to people aware of the matter.
Sources informed ET that if the proposed unit, which is positioned in the YEIDA area, receives approval from the central authorities, it will likely be the primary undertaking of its form in Uttar Pradesh.
In the three way partnership, Foxconn holds a 40% fairness stake and is anticipated to make investments $37.2 million. The majority associate, HCL Group, has been given the authority to select the placement of the unit.
Foxconn-HCL chip JV plans
One of the people cited above stated, “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.”
Industry consultants imagine that UP is the proper location for HCL and Foxconn to set up their operations.
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Prabhu Ram, vp 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 additionally added that the state is well-equipped to change into a outstanding hub for semiconductor manufacturing.
During the opening session of Semicon India 2024, UP Chief Minister Yogi Adityanath highlighted that cell manufacturing items in his state are at present producing greater than 55% of mobiles and over half of all cell elements made in India.
The HCL Group-Foxconn three way partnership is at present awaiting approval from the India Semiconductor Mission (ISM).
A supply 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 anticipated to come inside two to three weeks after the submission of the doc, which ISM considers extra of a formality.
In January, HCL Group and Foxconn introduced their JV to set up an OSAT unit in India, with sources indicating that the full funding may vary between $100 million and $150 million. This partnership got here after Foxconn withdrew from its $19.5 billion JV with Vedanta to manufacture semiconductors in India.
Meanwhile, the Tata Group is set to set up an OSAT facility in Assam, whereas their semiconductor chip fabrication unit will likely be positioned in Gujarat. The western state has additionally attracted investments from CG Power, Micron, and Kaynes Semicon for their respective OSAT, packaging, and semiconductor amenities.
