Uttar Pradesh is a preferred choice by HCL, as it has headquarter in Noida, and the incentives offered by the state government makes it an ideal choice for its joint venture with Foxconn
Uttar Pradesh might get its first semiconductor outsourced assembly and testing (OSAT) unit as Foxconn and HCL Group have been allotted land in the state. Nearly 30 acres of land, located in the Yamuna Expressway Industrial Development Authority (YEIDA) region, have been allotted to the two companies. The central government is yet to give its nod to the project.
Foxconn holds nearly 40 per cent equity shares in the joint venture and gave the HCL Group, the majority partner, to finalise the location of the unit, this was first reported by Economic Times.
“HCL said it prefers UP as its headquarter is located in Noida and it will have a strong home base advantage. It emphasised that it has a strong footing in the state and the familiarity would make it smoother to manage,” ET reported, citing a source.
Moreover, the experts quoted in the ET report believe that the incentives offered by the UP government make the state an “ideal choice” for HCL and Foxconn to establish operations.
The state government came up with Uttar Pradesh Semiconductor Policy 2024 earlier this year. “The policy provides for assistance on capital investment, interest subsidy, rebate on land value, stamps duty and electricity charges. Uttar Pradesh is already being established as a hub in the field of semiconductor design engineering,” said chief minister Yogi Adityanath at the India Expo Mart event.
Foxconn, a major global electronics contract manufacturer, has witnessed a significant expansion to over $10 as of 2024 in its operations in India. The company has also contributed to employment generation in the country, with nearly 48,000 workers employed by it.