Foxconn, Thales and Radiall Unite to Launch France’s Tessalia OSAT Chip Venture

Foxconn Expands in France With AI Infrastructure and Advanced Chip Packaging Projects

Foxconn is strengthening its presence in France with two major initiatives focused on artificial intelligence infrastructure and semiconductor packaging. The move highlights the company’s growing role in Europe’s push to build stronger technology supply chains, expand advanced computing capacity, and reduce reliance on overseas chip production.

The Taiwanese electronics manufacturing giant is best known for assembling some of the world’s most popular consumer electronics, but its ambitions now stretch far beyond traditional manufacturing. With demand for AI servers, high-performance computing systems, and advanced semiconductor services rising quickly, Foxconn is positioning itself as a key partner in Europe’s next phase of digital and industrial growth.

A major part of this expansion is tied to semiconductor packaging, an increasingly important stage in the chipmaking process. Foxconn, Thales, and Radiall have launched a new venture in France called Tessalia, focused on outsourced semiconductor assembly and testing, commonly known as OSAT. This type of operation is essential because modern chips require highly precise packaging to deliver better performance, efficiency, and reliability.

As artificial intelligence, automotive technology, aerospace systems, defense platforms, and connected devices become more complex, advanced chip packaging is gaining strategic importance. It is no longer just the final step in semiconductor production. Instead, it has become a crucial area where companies can improve speed, power consumption, and system integration.

The creation of Tessalia gives France a stronger position in the semiconductor value chain. Europe has been working to expand its chip capabilities as global demand continues to rise and supply chain security becomes a priority for governments and industries. By building more capacity within Europe, companies can support local manufacturing, improve resilience, and respond more quickly to the needs of customers in critical sectors.

Foxconn’s involvement also signals confidence in France as a hub for high-tech investment. The country has been actively attracting projects in artificial intelligence, cloud computing, data centers, and microelectronics. With access to skilled engineering talent, established industrial partners, and growing public support for strategic technology sectors, France is becoming an increasingly attractive location for global technology firms.

Alongside semiconductor packaging, Foxconn is also expanding into artificial intelligence infrastructure in the country. AI infrastructure includes the hardware and systems needed to train and run advanced AI models, such as servers, data centers, networking equipment, cooling technology, and power management solutions. As businesses and governments adopt AI at a faster pace, demand for this infrastructure is expected to grow significantly.

Foxconn’s experience in large-scale electronics manufacturing gives it an advantage in this area. The company already produces servers and components used in data centers and cloud computing environments. By expanding AI-related operations in France, Foxconn can support the development of local and regional computing capacity at a time when AI is becoming central to economic competitiveness.

The two projects also reflect a broader shift in the global technology industry. Companies are increasingly looking to diversify production and build stronger regional supply chains. Recent years have shown how vulnerable the semiconductor and electronics sectors can be to disruptions. As a result, governments and businesses are investing in local capabilities for everything from chip design and packaging to computing infrastructure and advanced manufacturing.

For France, Foxconn’s expansion could bring new jobs, deeper industrial collaboration, and stronger expertise in high-value technology fields. For Foxconn, the projects provide a larger foothold in Europe and open the door to closer partnerships with customers in industries such as automotive, aerospace, defense, telecommunications, and artificial intelligence.

The launch of Tessalia with Thales and Radiall is especially notable because it combines Foxconn’s manufacturing scale with strong European industrial expertise. Thales brings deep experience in defense, aerospace, cybersecurity, and critical systems, while Radiall contributes specialized knowledge in electronic connectors and advanced interconnect solutions. Together, the partners can support semiconductor packaging needs for sectors where reliability and performance are essential.

As the global race for AI and semiconductor leadership intensifies, investments like these are becoming more important. Europe wants to play a larger role in advanced computing and chip technologies, and Foxconn’s latest move in France fits directly into that strategy.

By combining AI infrastructure development with semiconductor assembly and testing capabilities, Foxconn is not just expanding its business footprint. It is helping shape a more resilient European technology ecosystem built around advanced manufacturing, secure supply chains, and next-generation computing.