Foxconn, HCL break ground on NT$13.1 billion chip plant in India

Taipei, Feb. 22 (CNA) Taiwan-based manufacturing giant Hon Hai Technology Group (Foxconn) and India-based HCL Group held a groundbreaking ceremony for their joint-venture semiconductor facility in India on Saturday.

The joint venture company, India Chip Pvt Ltd., located in Greater Noida in the Indian state of Uttar Pradesh, will operate as an OSAT (outsourced semiconductor assembly and test) facility and is expected to be operational by 2028, according to Indian media Hindustan Times and the Times of India.

Costing about NT$13.1 billion (US$403 million), the facility will manufacture display driver integrated circuits, and will have a capacity of about 20,000 wafers per month, the Indian news outlets said.

In a video address at the groundbreaking ceremony, India's Prime Minister Narendra Modi said that during the COVID-19 pandemic, India realized its chip supply chain was fragile and decided to pursue self-reliance in chip manufacturing.

India will only be developed when it is self-reliant, Modi said in emphasizing the importance of manufacturing chips domestically.

Modi thanked HCL and Foxconn for their partnership, saying Foxconn's presence sends a global message that "a democratic India is a trusted partner."

Hon Hai Chairman Young Liu (劉揚偉) and HCL Technologies Chairperson Roshni Nadar also attended the ceremony.

"This joint venture is a great example of how we build, operate and localise in India," Liu was quoted as saying at the ceremony by Hindustan Times.

The joint venture is the sixth factory approved under the India Semiconductor Mission, as Modi has prioritized India's chip self-reliance to strengthen India's role as a global electronic manufacturer.