Tessalia Joint Venture Advances European Chip Packaging Ambitions With Planned 50 Million SiP Components Annually by 2033

©Adrien Daste – Thales

(IN BRIEF) Foxconn, Radiall and Thales have inaugurated the next stage of Tessalia Technology SAS, a new joint venture in Le Barp, Nouvelle-Aquitaine, dedicated to Outsourced Semiconductor Assembly and Testing. Created within the framework of the EU Chips Act, Tessalia aims to produce more than 50 million System in Package components per year by 2033 and support Europe’s semiconductor autonomy in strategic sectors such as aerospace, telecom infrastructure, automotive and medical technologies. The project combines Foxconn’s advanced manufacturing and semiconductor expertise, Radiall’s high-performance interconnect capabilities and Thales’ experience in advanced technologies and critical systems. Production is expected to begin at the end of 2029, with investment potentially exceeding €250 million by 2033 and around 800 jobs expected at full production. Located near Bordeaux in a strong industrial and academic ecosystem, Tessalia will use advanced encapsulation technology to create smaller, lighter and more integrated electronic components while simplifying supply chains, reducing cycle times and supporting Europe’s long-term semiconductor competitiveness.

(PRESS RELEASE) LA DÉFENSE, 2-Jun-2026 — /EuropaWire/ — Foxconn, Radiall and Thales have formally launched the next phase of Tessalia Technology SAS, a new European semiconductor packaging joint venture designed to strengthen advanced chip assembly and testing capacity in France and across Europe. The three companies laid the foundation stone for the future site in Le Barp, Nouvelle-Aquitaine, on 1 June 2026 during the Choose France 2026 Summit, marking a concrete step in a project first announced one year earlier.

Tessalia will focus on Outsourced Semiconductor Assembly and Testing, commonly known as OSAT, with the ambition of producing more than 50 million System in Package components annually by 2033. The initiative is positioned within the framework of the EU Chips Act and aims to reinforce Europe’s semiconductor value chain at a time when demand for electronics, artificial intelligence technologies and secure supply chains continues to grow.

The new company brings together the complementary expertise of three major industrial players. Foxconn, the world’s largest electronics manufacturing services provider, will contribute advanced manufacturing and semiconductor packaging know-how under agreed licensing arrangements. Radiall, a French specialist in high-performance interconnect solutions, will bring experience in demanding markets requiring reliable and advanced connectivity. Thales, a global advanced technology group, will contribute its expertise in critical systems, strategic technologies and high-reliability electronics.

The name Tessalia refers to “tessella,” the Latin word for small tiles used in mosaics, reflecting the company’s role in assembling complex electronic components into compact, high-performance systems. Its work will centre on advanced packaging solutions for electronic chips, particularly System in Package technologies serving sectors such as aerospace, telecommunications infrastructure, automotive and medical applications.

Tessalia will use an innovative encapsulation technology designed to support ultra-high-density packaging. This approach is expected to simplify printed circuit boards, reduce the size and weight of components and improve integration capabilities. The technology is also intended to support better yields and stronger competitiveness for future electronic products.

The Le Barp site, near Bordeaux, was selected for its position within a strong regional industrial and academic ecosystem. The area is close to the Route des Lasers and benefits from cleanroom infrastructure and a concentration of specialised expertise, making it well suited to advanced semiconductor and high-technology manufacturing activities.

Tessalia is intended to serve as a sovereign and competitive European player in semiconductor packaging, addressing strategic needs in sectors where secure and resilient supply chains are increasingly important. The company will also provide customers with a single interface for advanced chip packaging implementation, reducing complexity, shortening cycle times and limiting the environmental impact associated with fragmented global supplier networks.

Production is scheduled to begin at the end of 2029, with annual output expected to exceed 50 million System in Package components by 2033. The partners aim to attract additional industrial players to support an investment that could surpass €250 million by 2033. At full production, Tessalia is expected to employ around 800 people.

Sébastien Martin, French Minister Delegate to the Minister of Industry, said the project shows how a strategic industrial vision has moved into implementation within one year. He described the choice of Le Barp as a sign of confidence in France as a technological and industrial hub for semiconductors.

Pierre Gattaz, Chairman and CEO of Radiall, described the new capacity as an important sovereign asset for the French and European semiconductor sector. He said the project supports Radiall’s strategy by enabling the development of advanced connection solutions for demanding applications.

Young Liu, Chairman of Foxconn, said Tessalia represents more than a factory, describing it as a strategic platform for advanced manufacturing, semiconductor resilience and future technologies in Europe. He also linked the project to Foxconn’s Build-Operate-Localize strategy, which expands the group’s technology footprint through trusted partnerships.

Patrice Caine, Chairman and CEO of Thales, said the foundation stone reflects the partners’ shared ambition to create an innovative and competitive European player in advanced semiconductor packaging. He also highlighted the project’s role in strengthening independence and control across the electronics value chain.

Alain Rousset, President of the Nouvelle-Aquitaine Region, welcomed the factory as a strategic project for electronics sovereignty. He said it strengthens a regional sector that already represents 20,000 jobs and reflects long-standing reindustrialisation efforts in Nouvelle-Aquitaine.

Foxconn, Radiall and Thales are positioning Tessalia as a future European platform for advanced semiconductor packaging, designed to support industrial competitiveness, supply-chain resilience and technological autonomy in strategic sectors.

About Foxconn

Hon Hai Technology Group (Foxconn) (TWSE:2317) is the world’s largest electronics manufacturer and leading technology solutions provider, ranking 28th in Fortune Global 500. In 2025, revenue totaled TWD8.1 trillion (approx. USD260 billion). The Group’s market share in electronics manufacturing services (EMS) exceeds 40% and covers four major product segments: smart consumer electronics; cloud and networking; computing; and components and other. Operating over 240 campuses across 24 countries, Foxconn is one of the world’s largest employers with approx. 900,000 employees during peak manufacturing season. We are committed to sustainability in the manufacturing process and serving as a best-practice model for global enterprises. The Group is guided by its 3+3+3 strategy, actively investing in industries of electric vehicles, digital health, and robotics; in technologies of artificial intelligence, semiconductors and next-generation communications; in intelligent platforms of Smart Manufacturing, Smart EV and Smart City. Foxconn is dedicated to becoming a comprehensive, world-class enterprise, with AI as its core driving force. Learn more at www.foxconn.com/en-us

About Radiall

Founded in 1952, Radiall is a global manufacturer of advanced interconnect solutions, employing over 3,500 people worldwide. The company offers a comprehensive range of RF connectors and cables, coaxial switches, fiber optic and microwave components, multi-contact connectors and more, supported by an international presence ensuring close customer support.

About Thales

Thales (Euronext Paris: HO) is a global leader in advanced technologies. Its portfolio of innovative products and services helps address several major challenges: sovereignty, security, sustainability and inclusion. The Group allocates €4.5 billion per year in Research & Development in key areas, particularly for critical environments, such as Artificial Intelligence, Cybersecurity, Quantum and Cloud technologies.

Thales has more than 85,000 employees in 65 countries. In 2025, the Group generated sales of €22.1 billion.

Media Contacts:

Foxconn:

Jimmy Huang
Group Deputy Spokesperson
media@foxconn.com

Radiall:

Luc Kaes
Group Chief Operating Officer
luc.kaes@radiall.com

Thales:

Philomène Emptaz
Media Relations Manager, Group and innovation
philomene.emptaz@thalesgroup.com

SOURCE: Thales