Taiwanese electronics giant Foxconn has reportedly invited bids for construction of a chip assembly and testing plant in India.
The company has committed an initial funding of Rs 1,200 crore for the project, Business Standard reported citing a regulatory filing.
In the company filing, Foxconn said it is making an announcement on behalf of subsidiary Foxconn Hon Hai Technology India Mega Development Pvt Ltd for engaging others to build on owned land.
Last month, Foxconn Hon Hai Technology India Mega Development Pvt Ltd had allocated $37.2 million or about Rs 308 crore for setting up the joint venture.
They will set up an outsourced assembly and testing (OSAT) unit, with an expected investment of $100-150 million.
An OSAT unit provides third-party chip packaging and testing to semiconductor fabrication units. Both fabless and fab companies outsource these services to such units to save costs.
Foxconn’s share in the joint venture will be $37.2 million for 40 per cent stake through Foxconn Hon Hai Technology India Mega Development, a subsidiary of Foxconn.
The Taiwanese tech giant's first attempt at entering the Indian semiconductor ecosystem, a joint venture with the Anil Agarwal-led Vedanta Group, ended last year after the two firms announced to part their ways.
Both Vedanta and Foxconn, in separate statements, announced that they will set up their chip plants in India.
Kuldeep is Senior Editor (Newsroom) at Swarajya. He tweets at @kaydnegi.
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