Foxconn-HCL joint venture secures land for semiconductor plant in Noida
ECONOMY & POLICY

Foxconn-HCL joint venture secures land for semiconductor plant in Noida

A joint venture between Taiwan’s Foxconn and the HCL Group reportedly acquired approximately 30 acres of land near the forthcoming Jewar airport in Noida, Uttar Pradesh, as noted by The Economic Times. The land, allocated by the Yamuna Expressway Industrial Development Authority (YEIDA), is intended for the establishment of a semiconductor outsourced assembly and testing (OSAT) unit, according to sources familiar with the matter.

This proposed project is anticipated to be a major milestone for Uttar Pradesh, being the first OSAT unit in the state, pending central government approval. Foxconn is expected to invest about $37.2 million in the venture, holding a 40 per cent equity stake, while the decision regarding the unit’s location has been left to the HCL Group, the majority partner. HCL prefers Uttar Pradesh for the site, believing that its proximity to its headquarters in Noida provides a strategic advantage. A source indicated that HCL’s strong presence and familiarity with the region would facilitate smoother operations.

Foxconn’s business in India has reportedly grown to over $10 billion as of 2024. The company has already invested $1.4 billion in the country and is continuing to expand its operations. Currently, Foxconn employs around 48,000 people in India, with a notable focus on increasing female representation in the workforce. It has established a facility in Tamil Nadu, in collaboration with the State Industries Promotion Corporation of Tamil Nadu (SIPCOT), to accommodate over 18,000 women employees. This facility, covering 20 acres and costing about Rs 706 crore, operates on a room-sharing basis and is one of the largest employers of women in India, with a workforce comprising 70 per cent women and 30 per cent men.

In addition to its semiconductor and electronics manufacturing, Foxconn is reportedly expanding into the Battery Energy Storage System (BESS) sector, particularly within the electric vehicle (EV) market. Foxconn’s chairman, Young Liu, confirmed plans to establish a BESS unit in India, following the success of their initial plant in Taiwan. Liu noted that Foxconn’s ‘3+3 strategy’ focuses on three key areas: electric vehicles, digital health, and robotics. The EV segment is central to Foxconn’s growth plans, and the company is expanding its battery manufacturing operations to support the EV market. Liu mentioned that production of electric vehicles in India is expected to commence “very soon.”

A joint venture between Taiwan’s Foxconn and the HCL Group reportedly acquired approximately 30 acres of land near the forthcoming Jewar airport in Noida, Uttar Pradesh, as noted by The Economic Times. The land, allocated by the Yamuna Expressway Industrial Development Authority (YEIDA), is intended for the establishment of a semiconductor outsourced assembly and testing (OSAT) unit, according to sources familiar with the matter. This proposed project is anticipated to be a major milestone for Uttar Pradesh, being the first OSAT unit in the state, pending central government approval. Foxconn is expected to invest about $37.2 million in the venture, holding a 40 per cent equity stake, while the decision regarding the unit’s location has been left to the HCL Group, the majority partner. HCL prefers Uttar Pradesh for the site, believing that its proximity to its headquarters in Noida provides a strategic advantage. A source indicated that HCL’s strong presence and familiarity with the region would facilitate smoother operations. Foxconn’s business in India has reportedly grown to over $10 billion as of 2024. The company has already invested $1.4 billion in the country and is continuing to expand its operations. Currently, Foxconn employs around 48,000 people in India, with a notable focus on increasing female representation in the workforce. It has established a facility in Tamil Nadu, in collaboration with the State Industries Promotion Corporation of Tamil Nadu (SIPCOT), to accommodate over 18,000 women employees. This facility, covering 20 acres and costing about Rs 706 crore, operates on a room-sharing basis and is one of the largest employers of women in India, with a workforce comprising 70 per cent women and 30 per cent men. In addition to its semiconductor and electronics manufacturing, Foxconn is reportedly expanding into the Battery Energy Storage System (BESS) sector, particularly within the electric vehicle (EV) market. Foxconn’s chairman, Young Liu, confirmed plans to establish a BESS unit in India, following the success of their initial plant in Taiwan. Liu noted that Foxconn’s ‘3+3 strategy’ focuses on three key areas: electric vehicles, digital health, and robotics. The EV segment is central to Foxconn’s growth plans, and the company is expanding its battery manufacturing operations to support the EV market. Liu mentioned that production of electric vehicles in India is expected to commence “very soon.”

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