Foxconn, Radiall, and Thales have formally established Tessalia Technology SAS, a joint venture dedicated to Outsourced Semiconductor Assembly and Testing (OSAT) in France. The initiative aims to produce over 50 million System in Package (SiP) components annually by 2033, significantly strengthening the European semiconductor ecosystem under the framework of the EU Chips Act.

The foundation stone for the future facility at Le Barp, Nouvelle-Aquitaine, was laid on Monday, June 1, 2026, during the Choose France 2026 Summit. Dignitaries present included French Minister Delegate to the Minister of Industry, Mr. Sébastien Martin; Dr. Bob Wei-Ming Chen, President of S Business Group for Hon Hai Technology Group (Foxconn); Mr. Pierre Gattaz, Chairman and CEO of Radiall; Mr. Patrice Caine, Chairman and CEO of Thales; and Mr. Alain Rousset, President of the Nouvelle-Aquitaine Region.

Strategic Objectives and Production Targets

Tessalia Technology SAS will specialize in advanced packaging solutions for electronic chips, specifically System in Package (SiP) components, utilizing innovative encapsulation technology. This approach targets ultra-high-density packaging to simplify printed circuit board (PCB) designs and enable smaller, lighter components crucial for integration across various demanding sectors.

Production is slated to commence by the end of 2029. The joint venture aims for an annual output exceeding 50 million SiP components by 2033. These components are intended for critical applications in aerospace, telecom infrastructure, automotive, and medical industries.

Mr. Sébastien Martin, France’s Minister of Industry, emphasized the project’s role, stating, “This unique factory in Europe complements the semiconductor value chain and strengthens European sovereignty. Foxconn’s decision, along with Thales and Radiall, signals confidence in France’s attractiveness as a technological and industrial hub for semiconductors.”

Bolstering European Semiconductor Autonomy

The establishment of Tessalia is positioned as a key component in Europe’s broader strategy to enhance its strategic autonomy and competitiveness in the semiconductor sector. It seeks to provide a sovereign and reliable source for semiconductor packaging within the continent, reducing reliance on global supply chains that have faced recent disruptions.

“This new advanced capacity is a key sovereign asset for the European and French semiconductor industry,” said Pierre Gattaz, Chairman and CEO of Radiall. “This project aligns perfectly with Radiall’s strategy, enabling the development of our next advanced connection solutions for demanding applications.”

Patrice Caine, Chairman and CEO of Thales, highlighted the collaborative ambition. “The laying of this first stone today demonstrates our shared ambition, together with Radiall and Foxconn, to build an innovative and competitive European player in the advanced semiconductor packaging market, in a context of strong competition,” he stated. “Tessalia is part of a drive for independence and control over the value chain of all our electronic products.”

Investment and Economic Impact

The project is anticipated to involve investments potentially exceeding €250 million by 2033. At full production, Tessalia is expected to employ 800 individuals, contributing significantly to the regional economy. The Le Barp location was chosen due to its proximity to a robust academic and industrial ecosystem, including the “Route des Lasers” and established cleanroom facilities.

Young Liu, Chairman of Foxconn, reiterated the company’s strategic vision. “This is not just a factory. It is a strategic platform for advanced manufacturing, semiconductor resilience, and future technologies in Europe,” he said. “This project also supports Foxconn’s strategy of Build-Operate-Localize, which expands our global technology footprint through trusted partnerships.”

Alain Rousset, President of the Nouvelle-Aquitaine Region, welcomed the development, noting its importance for regional reindustrialization efforts. “I am delighted to welcome this strategic factory, which is crucial for our sovereignty in the electronics sector,” Rousset remarked. “It strengthens our regional ecosystem in this sector, which already represents 20,000 jobs.”

This joint venture marks a notable development in the ongoing efforts to bolster advanced manufacturing capabilities within Europe, aligning with broader goals for technological independence and economic resilience. For more information on the Thales Group’s involvement, refer to their official announcement regarding the Tessalia venture. Further details on broader industry developments can be found at [https://technosports.co.in/](https://technosports.co.in/).