French President Emmanuel Macron has expressed gratitude to Taiwan-based Hon Hai Precision Industry Co. for its plan to invest around €250 million (US$278 million) in a joint venture in France.

The investment will focus on semiconductor and space industries.

Foxconn signed two MOUs with French companies Thales and Radiall to create France’s first outsourced semiconductor assembly and test (OSAT) facility.

This will use fan-out wafer-level packaging (FOWLP) technology, focusing on automotive, space science, 6G mobile technologies, and national defense.

Foxconn will also collaborate with Thales on satellite production for telecommunications in low-Earth orbit.

This investment is the second-largest Taiwanese project in France, after ProLogium Technology Co.’s €5.2 billion (US$4.59 billion) solid-state battery factory announced in 2023.

.source-ref{font-size:0.85em;color:#666;display:block;margin-top:1em;}a.ask-tia-citation-link:hover{color:#11628d !important;background:#e9f6f5 !important;border-color:#11628d !important;text-decoration:none !important;}@media only screen and (min-width:768px){a.ask-tia-citation-link{font-size:11px !important;}}

🔗 Source: Focus Taiwan

🧠 Food for thought

1️⃣ Europe’s semiconductor sovereignty push creates new opportunities for Asian manufacturers

Hon Hai’s €250 million investment aligns with Europe’s quest for semiconductor self-sufficiency, as the continent currently produces less than 10% of global chips despite consuming 20% 1.

The European Chips Act, with its €43 billion support package, aims to double Europe’s global semiconductor production share to 20% by 2030, creating a welcoming environment for established Asian manufacturers 2.

This investment represents a strategic win-win: Europe gains advanced packaging capabilities through Hon Hai’s expertise, while the Taiwanese firm secures a foothold in a market projected to grow from €45 billion in 2024 to €70 billion by 2030 3.

The establishment of France’s first outsourced semiconductor assembly and test facility addresses a critical gap in Europe’s semiconductor ecosystem, which has traditionally focused on chip design rather than advanced manufacturing and packaging.

By bringing fan-out wafer-level packaging technology to France, Hon Hai is helping Europe reduce its vulnerability to supply chain disruptions that have impacted industries from automotive to healthcare in recent years.

2️⃣ Hon Hai accelerates diversification beyond consumer electronics manufacturing

This semiconductor and space industry investment exemplifies Hon Hai’s strategic pivot from being primarily an iPhone assembler to a diversified technology company with interests in high-growth, high-margin sectors.

With 2024 revenue reaching $208 billion, Hon Hai has been systematically expanding into electric vehicles, digital health, robotics, and now advanced semiconductor packaging and space technology 4.

The company’s global manufacturing network of over 230 facilities across 24 countries positions it uniquely to capitalize on regional technology initiatives while maintaining economies of scale 4.

Hon Hai’s partnership approach—working with established regional players like Thales and Radiall—demonstrates its strategy of leveraging local expertise while contributing its manufacturing prowess to new markets.

This diversification strategy has shown results in other sectors, as evidenced by Hon Hai’s recent agreements with Japanese automakers for EV manufacturing and its partnership with Robust.AI to produce warehouse robotics 5, 6.

3️⃣ Taiwan-France economic ties strengthen amid global technology realignment

This investment represents the second-largest Taiwanese commitment to France, following ProLogium’s €5.2 billion battery factory announcement, signaling growing economic cooperation between the two economies.

Since the 2011 tax treaty between Taiwan and France, which reduced withholding taxes to 10% and eliminated double taxation, bilateral investments have steadily increased from an initial base of about 60 Taiwanese companies with French operations 7.

The trend highlights how medium-sized economies are forming strategic technology partnerships as global supply chains reconfigure around regional hubs rather than purely cost-driven global networks.

France gains valuable semiconductor packaging capabilities in critical sectors like automotive, space science, and national defense, while Taiwan extends its technological influence beyond traditional manufacturing bases in Asia and North America.

The publicly expressed gratitude from President Macron underscores the political significance of these investments beyond their economic value, particularly in the context of Europe’s efforts to develop technological sovereignty.

Recent Foxconn developments

……