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Foxconn has arrange a three way partnership with Indian IT large HCL Group to determine its semiconductor packaging and testing operations in India, because the Apple manufacturing associate appears to be like to increase its presence within the South Asian nation to cut back reliance on China.

As part of the deal, Foxconn Hon Hai Technology India Mega Development, a subsidiary of the Taiwanese firm, will make investments $37.2 million for a 40% stake, it disclosed in a inventory trade submitting.

This might be Foxconn’s first funding towards establishing Outsourced Semiconductor Assembly And Test (OSAT) operations in India. The firm has dedicated to placing billions of {dollars} into the nation to bolster its home manufacturing for patrons together with Apple and Xiaomi.

“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 will deploy its BOL, or build-operate-localize, model to support local communities,” the Taiwanese firm stated in a press release to TechCrunch.

In November final 12 months, Foxconn introduced its plans to invest $1.5 billion in India to fulfil its “operational needs.” The firm additionally partnered with local conglomerate Vedanta to arrange a $20 billion semiconductor unit within the Indian state of Gujarat. However, it will definitely pulled out of the deal in July whereas committing to “actively reviewing the landscape for optimal partners.”

The producer additionally submitted a recent utility to begin its semiconductor fabrication unit within the nation later within the 12 months, Deputy IT Minister Rajeev Chandrashekhar stated within the parliament.

“HCL Group has a strong engineering and manufacturing heritage and this is an opportunity that provides strategic adjacency to the Group portfolio. This is line with Government of India’s vision of ‘Make in India’ and ‘Atmanirbhar Bharat’ also,” an HCL Group spokesperson stated.