Foxconn, Radiall, and Thales Launch Tessalia Joint Venture to Produce 50M SiP Units Annually

Why It Matters

The venture strengthens Europe’s semiconductor autonomy, reducing reliance on Asian OSATs while delivering faster, integrated SiP production for high‑performance applications.

Key Takeaways

• Tessalia aims for 50M SiP units per year by 2033
• Production slated to start end of 2029
• JV secured >€250M (~$270M) investment through 2033
• Offers single‑window design, assembly, testing via Foxconn licensing
• Enhances Europe’s autonomous high‑density packaging capability

Pulse Analysis

The formation of Tessalia Technology SAS marks a strategic convergence of three industry heavyweights—Foxconn, Radiall and Thales—into a single European OSAT platform. By pooling Foxconn’s massive manufacturing know‑how, Radiall’s expertise in high‑frequency interconnects, and Thales’s advanced packaging R&D, the joint venture is positioned to address the growing demand for ultra‑high‑density system‑in‑package solutions. These SiPs are critical for next‑generation smartphones, automotive electronics, and AI accelerators, where space, weight and performance constraints drive the need for tighter integration than traditional PCB designs can offer.

Europe has long lagged behind Asia in semiconductor assembly capacity, leaving key manufacturers vulnerable to supply‑chain disruptions and geopolitical pressures. Tessalia’s goal of delivering over 50 million SiP units annually by 2033 directly tackles this gap, providing regional customers with a locally sourced, vertically integrated alternative. The single‑window model—covering package design, assembly and testing—promises shorter lead times and higher yields, which could shift buying preferences toward European suppliers and stimulate further investment in the continent’s high‑tech ecosystem.

Financially, the venture’s projected €250 million (about $270 million) investment underscores confidence in the market’s long‑term growth trajectory. With production slated for late 2029, Tessalia will likely attract additional partners seeking access to its technology stack and capacity. As automotive electrification, 5G rollout, and edge‑AI deployments accelerate, the demand for compact, high‑performance SiPs is set to surge, positioning Tessalia as a pivotal player in the next wave of semiconductor innovation.

Deal Summary

Foxconn, Radiall, and Thales have formed Tessalia Technology SAS, a joint venture focused on semiconductor assembly and testing. The JV aims to produce over 50 million system‑in‑package units per year by 2033, backed by a projected investment of more than €250 million (≈$275 million). Production is slated to start by the end of 2029.