Foxconn has secured approval from the Indian government to build a new semiconductor assembly and testing plant in Uttar Pradesh, expanding its footprint in India amid Apple’s growing shift away from China. The $433 million project is a joint venture with India’s HCL Group and marks a significant move under India’s push to build a domestic semiconductor ecosystem.
The facility, set to begin operations by 2027, will produce display driver chips used in smartphones, laptops, and other electronics. While it won’t fabricate chips in its initial phase, it will handle assembly and testing, key steps in the semiconductor supply chain.
India Bets on Local Chip Ecosystem
India’s government is backing the project with financial support under its semiconductor incentive scheme, which offers up to 50% of project costs for approved applicants. The factory will have the capacity to process 20,000 wafers and deliver 36 million display driver chips each month.
Information Minister Ashwini Vaishnaw confirmed the plant will be located near the upcoming Jewar airport in Uttar Pradesh. While it won’t produce chips for Apple directly at this stage, officials hope it will lead to future processor manufacturing for the company in India.
As reported by TechCrunch, the facility is part of India’s broader effort to attract global electronics manufacturers and reduce dependence on imports. It also follows Foxconn’s exit from a 2022 chip project with Vedanta, which failed to progress.
Apple’s Manufacturing Shift Continues
Apple’s suppliers, including Foxconn, are ramping up operations in India to reduce exposure to geopolitical tensions and U.S. tariffs on Chinese imports. Foxconn already plans to double iPhone production in India by 2025.
India produced $22 billion worth of iPhones last year, and analysts expect the country to account for up to 20% of global iPhone production by the end of 2025.
President Donald Trump has publicly criticized Apple for expanding in India, urging the company to focus on U.S.-based production. However, the high costs of manufacturing iPhones in the U.S. remain a barrier, with estimates suggesting prices could rise to $3,500 per device.
Despite political pushback, Apple’s strategy to deepen its presence in India continues. The Foxconn-HCL joint venture represents a major step in India’s ambitions to become a critical part of the global chip supply chain.
Good. global markets deserve global supply chains.