Foxconn-HCL joint venture secures land for semiconductor plant in Noida
A joint venture between Taiwan’s Foxconn and the HCL Group has secured approximately 30 acres of land near the upcoming Jewar airport in Noida, Uttar Pradesh, reported The Economic Times. The land, allocated by the Yamuna Expressway Industrial Development Authority (YEIDA), is intended for setting up a semiconductor outsourced assembly and testing (OSAT) unit, according to individuals familiar with the development.
The proposed project could be a significant milestone for the state, as it would be the first OSAT unit to be established in Uttar Pradesh, pending approval from the central government.
Foxconn’s investment and HCL
Foxconn is expected to invest around $37.2 million in the venture, in which it holds a 40 per cent equity stake. However, it has left the decision of the unit’s location to HCL Group, the majority partner. HCL, preferring Uttar Pradesh as the site, believes that having the unit close to its headquarters in Noida offers a home base advantage. “HCL emphasised its strong foothold in the state and that its familiarity with the region would ensure smoother operations,” one source revealed.
Foxconn’s expanding operations in India
Foxconn’s business in India has grown to over $10 billion as of 2024. The company has already invested $1.4 billion in the country and continues to expand its presence.
Currently, the company employs about 48,000 people in India, with a focus on promoting women in the workforce. It has built a facility in Tamil Nadu through the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) to accommodate over 18,000 women employees. This facility, spread over 20 acres and costing around Rs 706 crore, operates on a room-sharing basis. The Tamil Nadu factory, one of the largest employers of women in India, boasts a workforce that is 70 per cent women and 30 per cent men.
Focus on electric vehicles and battery storage systems
In addition to its semiconductor and electronics manufacturing ventures, Foxconn is expanding into the Battery Energy Storage System (BESS) business, especially in the electric vehicle (EV) segment. Foxconn chairman Young Liu confirmed that plans are underway to set up a BESS unit in India, following the success of their first plant in Taiwan.
Foxconn’s ‘3+3 strategy’ prioritises three key sectors: Electric vehicles, digital health, and robotics. The EV segment, in particular, is central to its growth plans, as the company has been expanding its battery manufacturing operations to support the EV market. According to Liu, the production of electric vehicles in India is set to begin “very soon”.
[With inputs from PTI]
First Published: Sep 13 2024 | 11:34 AM IST