HCL-Foxconn OSAT Venture Gains Momentum with CTCI Appointment in Uttar Pradesh

The Indian government has just made another move to bolster its aspirations of becoming a destination for electronic manufacturing, with HCL Group and Foxconn. They announced the appointment of CTCI Corporation as the Engineering, Procurement, and Construction partner for their Outsourced Semiconductor Assembly and Test (OSAT) factory in Uttar Pradesh. The announcement is a crucial milestone in the HCL-Foxconn partnership, moving from conceptualization to implementation.

The choice of Taiwan-based CTCI Corporation, a globally renowned engineering company with a strong track record in high-tech infrastructure projects. This underlines the partners' investment in creating a state-of-the-art semiconductor manufacturing plant in the Indian state.

Uttar Pradesh Emerges as a New Semiconductor Destination

The new manufacturing facility will be set up in Uttar Pradesh's growing industrial belt, where the government is now aggressively wooing semiconductors. Uttar Pradesh's Semiconductor Policy 2024 provides incentives such as financial subsidies, infrastructure investments, and site selection. Foxconn's involvement is significant as it aims to expand its presence in India following a revamp of its previous chip manufacturing plans. The initiative allows Foxconn a new chance to build a presence in a rapidly expanding market for electronics consumption.

The project is also a significant diversification for HCL Group from its traditional stronghold in IT solutions. Expanding into the manufacturing infrastructure space could start shifting the company's business model and capitalise on its deep local network and technology know-how.

According to Precedence Research, the Data Center EPC Market size was calculated at USD 28.50 billion in 2025 and is predicted to increase from USD 31.86 billion in 2026 to approximately USD 86.95 billion by 2035, expanding at a CAGR of 11.80% from 2026 to 2035. The market growth is attributed to rising hyperscale investments, expanding AI workloads, growing cloud adoption, and increasing demand for resilient digital infrastructure.

Strategic Buildout Supports India’s Manufacturing Future

CTCI Corporation will be technologically involved in building the factory. Cleanrooms, vibration isolation, reliable utilities, and advanced waste management are all key components of semiconductor assembly and test plants. The firm's track record of building complex industrial facilities in Asia and the Middle East should enable speedy project delivery. Accelerated project execution is crucial because India aims to play a greater role in the global electronics and semiconductor industry value chain.

Local chip assembly and testing will reduce India's dependency on offshore facilities and enhance its supply chain resilience. This is especially important as companies are re-sourcing technology based on geopolitical realities. The successful nomination of EPC means that the project is now moving to construction. This shift from strategy to execution is also a sign of the growing momentum in India's semiconductor strategy.