Foxconn, Apple's main manufacturing partner, has entered into a joint venture with Indian IT giant HCL Group to establish semiconductor packaging and testing operations in India. This move is part of Foxconn's strategy to expand its presence in India and reduce its reliance on China. In a filing submitted to the stock exchange, Foxconn subsidiary Foxconn Hon Hai Technology India Mega Development disclosed a $37.2 million investment to acquire a 40% stake in the joint venture.

This marks the first step for Foxconn in establishing outsourced semiconductor assembly and testing (OSAT) operations in India, as the company commits to significant investments in India to strengthen its domestic manufacturing capabilities and serve customers such as Apple and Xiaomi.

In a statement, Foxconn expressed its anticipation to collaborate with HCL in establishing OSAT operations in India, with a focus on building an ecosystem and enhancing the resilience of the domestic industry's supply chain. The company plans to leverage its "Build-Operate-Localize" (BOL) model to support the local community.

Foxconn's investment plans in India have been attracting attention. Last November, the company announced a $1.5 billion investment in India to meet its operational needs. Additionally, Foxconn had previously partnered with local conglomerate Vedanta to invest $20 billion in establishing a semiconductor unit in the state of Gujarat, although it withdrew from the deal in July, stating continued interest in finding the right partners.

Foxconn has also submitted a new application to launch its semiconductor manufacturing unit in India later this year, which has been confirmed by Deputy IT Minister Rajeev Chandrasekhar in parliament.

On the other hand, HCL Group sees this collaboration as aligned with the Indian government's vision of "Make in India" and "Self-Reliant India" (Atmanirbhar Bharat). The group brings its strong engineering and manufacturing heritage to this opportunity, complementing its existing product portfolio.