India OSAT: Foxconn partner with HCL to setup semiconductor packaging unit in India

Date: 22/01/2024
Taiwan's no. 1 electronics manufacturing expert Foxconn is partnering with India's leading electronics, computer and IT technology business conglomerate HCL group to set up a chip assembly, testing and packaging company in India.

HCL is one of the earliest company in India to enter computer hardware and software business. Back in 1980s, HCL was one of the leading personal computer maker and seller in India. Later HCL has moved more into services business where it is now a strong leader in IT services, electronics design and semiconductor design services. HCL is also a leading services provider in the semiconductor manufacturing sector. HCL Tech, through the acquisition Sankalp Semiconductor is top-ranked VLSI design service provider to top chipmakers in the world.

Foxconn is one of the largest precision EMS (Electronic Manufacturing Services) company, where it makes most advanced personal devices such as smart phones for leading companies such as Apple. It has huge operations in India with its electronic manufacturing services facilities in Chennai, Bangalore and in many other parts of India.

Foxconn, though not a well-known name in semiconductor manufacturing, it is building its capabilities in both semiconductor wafer manufacturing as well as packaging business. Since it is based out of Taiwan and has huge operations in China and other parts of Asia, it has access to resources and expertise related to semiconductor manufacturing.

Ideally the partnership between HCL and Foxconn looks a powerful combination, however both do not have any proven large-scale globally competitive established business in semiconductor packaging. With their large pool of resources, they can scale to compete with leading semiconductor packaging services business, which is also called as OSAT (Outsourced Semiconductor Assembly and Test).

Tessolve is one of the leading OSAT service provider in India. Recently, a new company called Sahasra Semiconductors has already started production of memory-devices from its semiconductor packaging facility in India. Micron started construction of itís semiconductor packaging factory in Gujarat and expected to produce volumes as early as 2025. Tata has also announced getting both into semiconductor packaging and wafer fabrication. Mysore based Kaynes has also started building OSAT facilities in Hyderabad, Telengana.