Taiwanese electronics manufacturer Foxconn has entered into a joint venture (JV) with HCL Group to set up an outsourced assembly and testing (OSAT) facility in India.

According to a regulatory filing with the Taiwanese Stock Exhange, the $37.2 million deal will see Foxconn, also known as Hon Hai Precision, take a 40 percent stake in the chip packing and testing plant. No information about the location of the site or financial details relating to HCL was disclosed in the filing.

"Foxconn looks forward to jointly setting up OSAT operations in India with HCL. Through this investment, the partners aim to build an ecosystem and foster supply chain resilience for the domestic industry," Foxconn said in a statement. "Foxconn will deploy its BOL, or build-operate-localize, model to support local communities."

The newly disclosed OSAT is not Foxconn’s only proposed business venture in India. In July 2023, the company withdrew from a $19.5 billion chipmaking JV with Vendanta, an India metals-to-oil conglomerate. However, despite pulling the plug on that partnership, Foxconn is still looking to set up a semiconductor fabrication plant in the country and benefit from the Indian government’s $10bn chip manufacturing incentive fund.

Under India's Modified Programme for Semiconductors and Display Fab Ecosystem, companies can apply for up to 50 percent of capital costs for eligible semiconductor and display manufacturing projects. First announced in 2021, the Indian government said at the time it expects the plan to create around 35,000 high-quality positions, 100,000 indirect jobs, and attract investment worth $8.8bn.

In order to combat the slow growth in its smartphone business, Foxconn has sought to expand its market share in the semiconductor industry in recent years. In 2019, the head of its semiconductor division was appointed the chairman and president of the entire company.