Foxconn and HCL announced a joint venture to establish an OSAT facility in India, boosting the country’s chipmaking ambitions.
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What is OSAT and why is it important?
OSAT stands for outsourced assembly and testing, a process that converts foundry-made silicon wafers into finished semiconductor chips. OSAT is a crucial step in the semiconductor supply chain, as it determines the quality and performance of the chips.
How much are Foxconn and HCL investing in the project?
According to a regulatory filing, Foxconn’s India unit will own a 40% stake in the joint venture with a $37.2 million investment. HCL did not disclose its financial details. The companies said that the investment will help build an ecosystem and foster supply chain resilience for the domestic industry.
Where will the OSAT facility be located?
The companies did not reveal the location of the proposed project. However, India has several semiconductor clusters in states such as Karnataka, Telangana, Gujarat, and Uttar Pradesh, where the OSAT facility could be set up.
What are Foxconn’s other plans in India?
Foxconn is also eyeing to set up a semiconductor fabrication plant in India, where the government has offered $10 billion in incentives to start local chip manufacturing. The Taiwanese firm, however, had a bumpy start to its semiconductor foray in India last year after a high-profile split with local conglomerate Vedanta on a $19.5 billion chipmaking joint venture.
With input from Reuters
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