Foxconn plans to invest ₹424 crore in semiconductor JV with HCL

Taiwanese chipmaking giant Foxconn plans to invest up to ₹424 crore in a semiconductor joint venture (JV) with HCL Group, PTI reported on Tuesday, quoting an official note and people aware of the development.

According to the report, the iPhone manufacturer purchased a 40 per cent stake in the JV for nearly ₹312 crore.

“If the potential investment of no more than USD 13,310,000 (about ₹112 crore) is included, the total accumulated holding will not exceed USD 50,510,000 (about ₹424 crore) and the cumulative shareholding ratio will be adjusted based on the actual capital increase,” said Foxconn in the note, talking about investing in the JV unit which is yet to be named.

The investment is for the Foxconn-HCL OSAT (Outsourced Semiconductor Assembly And Test) plant to be set up in India, the report quoted sources as saying.

The Taiwanese chipmaker has invested ₹246 crore in the JV through its subsidiary Big Innovation Holdings and further increased the investment amount to ₹312 crore through Foxconn Hon Hai Technology India Mega Development Private Limited, as per the report.

Foxconn's India Investment

The company has invested more than $1.4 billion in India as of August 2024, and the business has grown to $10 billion. The company employs more than 48,000 people in India.

Foxconn is manufacturing Apple iPhones in India and gradually increasing its investments in the country by setting up another mega unit in Karnataka. It also has plans to set up an electric vehicle (EV) and a battery plant in India, as per the report.

The company has acquired 300 acres of land in the ITIR Industrial Area in the Doddaballapura and Devanahalli taluk of Bengaluru Rural District, which aims to host a project worth ₹22,000 crore. This is expected to generate jobs for 50,000 people, as per the report.