In a significant development, a joint venture (JV) between Taiwan’s Foxconn and India’s HCL Group has acquired around 30 acres of land near the upcoming Jewar airport in Noida, Uttar Pradesh, the media has reported. The land, allocated by the Yamuna Expressway Industrial Development Authority (YEIDA), is earmarked for the construction of a semiconductor outsourced assembly and testing (OSAT) unit, according to sources familiar with the matter, as reported by The Economic Times (ET).
This proposed project is poised to become a major milestone for Uttar Pradesh, marking the state’s first-ever OSAT unit, though it is still pending approval from the central government. Apple iPhone maker Foxconn is expected to invest approximately $37.2 million in the venture, where it holds a 40 per cent equity stake, while the majority partner, HCL Group, will make key decisions regarding the location. HCL Group has selected Uttar Pradesh as the site for the unit, citing the strategic advantage of being close to its Noida headquarters.
According to a source, as quoted by ET, HCL’s familiarity with the region is expected to contribute to smoother operations. “HCL highlighted its deep ties to the state and emphasised how this could benefit the venture,” the source noted.
Foxconn’s Expanding Presence In India
Foxconn’s footprint in India continues to grow significantly, with the company’s business surpassing $10 billion by 2024. The Taiwanese electronics giant has already committed $1.4 billion in investments across the country and currently employs around 48,000 workers in India. The company has also placed a strong focus on promoting gender diversity in its workforce, particularly through its facility in the southern Indian state of Tamil Nadu. Built under the State Industries Promotion Corporation of Tamil Nadu (SIPCOT), the 20-acre facility employs over 18,000 women and cost approximately Rs 706 crore to construct. Notably, the workforce at this site is composed of 70 per cent women, making it one of the largest employers of women in India.
Focus On Electric Vehicles, Battery Storage Systems
In addition to its ventures in semiconductor and electronics manufacturing, Foxconn is accelerating its efforts in the electric vehicle (EV) market, particularly through its Battery Energy Storage System (BESS) business. Foxconn chairman Young Liu recently confirmed that the company plans to establish a BESS unit in India, building on the success of its first plant in Taiwan. The company’s ‘3+3 strategy’ is central to its growth agenda, with a focus on three key sectors: electric vehicles, digital health, and robotics. The EV segment, in particular, holds immense importance as Foxconn continues to expand its battery production to support this growing market.
Liu hinted that the manufacturing of electric vehicles in India could commence “very soon,” signaling another potential boost to the country’s burgeoning EV ecosystem. This expansion into new sectors and regions underscores Foxconn’s commitment to diversifying its operations in India, aligning with broader trends in the global technology and manufacturing industries.