Foxconn is taking another major step in shifting Apple’s supply chain away from China, with plans to build a ₹37 billion ($435 million) India semiconductor plant. In a joint venture with India’s HCL Group, the new plant has officially received approval from the Indian government and is set to be located near Jewar airport in Uttar Pradesh.
This project marks yet another push by Apple’s key manufacturing partner to strengthen operations in India, especially as global trade tensions with China continue to cast uncertainty over the tech giant’s future production strategies.
Apple’s Manufacturing Pivot Gains Momentum
Expected to be operational by 2027, the upcoming facility will initially serve as an OSAT (outsourced semiconductor assembly and test) center. That means it won’t manufacture chips from scratch right away but will instead focus on testing and packaging semiconductors made elsewhere. It’s a foundational step, especially given India’s current limitations in advanced chip fabrication infrastructure.
Despite that, India’s IT minister Ashwini Vaishnaw sees this move as laying the groundwork for a future where India can independently manufacture chips. At a press conference in New Delhi, Vaishnaw emphasized that the facility is designed to process 20,000 wafers a month and could produce up to 36 million units monthly—primarily display driver chips used in smartphones, laptops, automobiles, and more.
He noted that the presence of this plant could pave the way for full-scale display panel manufacturing in the country—something India has long aimed to develop as part of its broader Make-in-India vision.
For Apple, this development fits perfectly into its growing bet on India. CEO Tim Cook recently hinted at deeper ties with the country as a buffer against U.S.–China trade volatility. By moving more assembly and component manufacturing to India, Apple can soften the blow of tariffs and supply chain disruption—potentially avoiding the need to raise prices globally.
Already, Apple has expanded iPhone assembly operations in India, exporting devices to markets including the U.S. The company is now eyeing production of additional product lines such as AirPods within the country.
While specifics around the Indian government’s incentives for this Foxconn-HCL project haven’t been disclosed, it’s likely to fall under India’s existing semiconductor policy. The initiative offers to cover up to 50% of the capital expenditure for chip-making facilities—a key component of India’s ambition to become a global chipmaking hub.
India’s Broader Semiconductor Push
The approval for this new plant follows a string of recent moves by the Indian government to grow its domestic semiconductor industry. Just eight months ago, a proposal by Kaynes Semicon to build a chip facility in Gujarat with an investment of ₹33 billion ($386 million) was greenlit.
In 2023, the government also committed up to ₹1.26 trillion ($15 billion) for three semiconductor plants under a broader $10 billion incentive scheme launched in 2021. Now, the tech world is watching closely for details on the second phase of India’s semiconductor program, though Vaishnaw has yet to reveal those plans.
As Foxconn strengthens its footprint in India, and with the backing of giants like Apple and HCL, the country edges closer to becoming a critical player in the global semiconductor ecosystem—starting not with chip fabrication, but by mastering the vital steps of assembly and testing.
