Foxconn's $435M India Chip Plant Boosts Apple Production

Foxconn Invests $435 Million in India Semiconductor Plant

Foxconn, a major Apple supplier, will build a new $435 million semiconductor plant in India. This joint venture with India's HCL Group aims to produce display driver chips and reduce Apple's dependence on China.

Plant to Begin Operations in 2027

Located near Jewar airport in Uttar Pradesh, the plant is expected to be operational by 2027. It will manufacture display driver chips for various devices, including smartphones, laptops, cars, and PCs, according to India's IT Minister Ashwini Vaishnaw.

Initial Focus on Assembly and Testing

Initially, the facility will function as a semiconductor assembly and test (OSAT) plant. This means it will package and test chips manufactured elsewhere, due to India's current lack of advanced chip fabrication capabilities.

Long-Term Goal: Chip Fabrication in India

Vaishnaw expressed hope that this venture will pave the way for India to develop its own chip fabrication capabilities, potentially powering Apple devices with domestically produced chips. He stated the plant will have a capacity of 20,000 wafers per month, producing 36 million units monthly.

Apple Diversifies Manufacturing Beyond China

This move strengthens Apple's efforts to diversify its manufacturing beyond China and deepen its ties with India. This announcement follows recent comments by Apple CEO Tim Cook about increasing manufacturing in India to navigate trade uncertainties with China.

Apple Expands India Operations

Apple has already significantly increased iPhone assembly in India for export to the U.S. and other markets. The company also plans to expand its India manufacturing base to include other devices like AirPods.

Government Incentives and Previous Investments

While specific government incentives for Foxconn remain undisclosed, India offers fiscal support of up to 50% of capital expenditure for semiconductor facilities. This approval follows other recent semiconductor investments in India, including Kaynes Semicon's $386 million facility and the government's allocation of $15 billion for three semiconductor plants.