Foxconn, HCL announce JV to set up semiconductor OSAT in India
Vedanta Ltd last year. The JV had planned to invest $20 billion in India for setting up a semiconductor fabrication unit, display unit and semiconductor assembly and testing unit.
The 60:40 partnership could have set up the country’s first semiconductor manufacturing unit under the $10 billion government-backed financial incentive scheme. However, after the fallout, both parties said they will proceed with their plans independently.
Industry watchers said Foxconn had a significant instrumentation expertise in setting up a mass-scale plant, and globally it is also looking to diversify from contract manufacturing because of market slowdown concerns. “They essentially operate in a low-margin business of less than 5%, which an OSAT business can help them improve.
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