New Delhi, India — In a move underscoring the evolving dynamics of global supply chains, Taiwan’s Foxconn, in partnership with India’s HCL Group, has secured approval for a $433 million semiconductor plant in India’s Uttar Pradesh state. The facility is part of India’s broader Semiconductor Mission and marks a significant strategic shift in the electronics manufacturing landscape.
Officially approved by the Indian government, the facility will produce display driver chips for consumer electronics, including smartphones, laptops, and automobiles. The plant is scheduled to be operational by 2027 and will have the capacity to produce up to 20,000 wafers and 36 million chips per month.
This investment comes amid a deliberate diversification strategy by Apple’s manufacturing partners, who are moving operations away from China due to ongoing geopolitical and trade pressures, particularly escalating U.S.–China tensions. Analysts expect India to account for up to 20% of global iPhone production by the end of 2025.
India’s information minister, Ashwini Vaishnaw, emphasized that this project reinforces India’s ambition to become a global semiconductor hub. “Foxconn’s investment reflects growing industry confidence in India’s industrial ecosystem,” he said.
The venture is the sixth semiconductor unit under India’s Semiconductor Mission, which provides fiscal support covering up to 50% of project costs for approved ventures. The initiative aims to establish a resilient domestic chip and display manufacturing capability.
Foxconn, also known as Hon Hai Technology Group, has steadily increased its presence in India since it began assembling iPhones there in 2019. Recent geopolitical shifts and pandemic-driven disruptions in China have only accelerated this pivot.
Although Foxconn previously exited a $19.5 billion semiconductor venture with Vedanta in 2023, the latest collaboration with HCL signals renewed commitment and improved strategic alignment within India’s policy framework.
The move is not only critical for Foxconn and Apple but also indicative of a broader realignment in the global technology supply chain. With the U.S. currently reassessing its semiconductor import policies, including potential new tariffs, manufacturers are actively repositioning to mitigate future disruptions.
As India advances toward building a full-stack electronics ecosystem, the Foxconn-HCL joint venture may serve as a blueprint for future international-industry collaborations targeting high-value sectors.
