India Greenlights New Foxconn Chip Plant: A Step Towards Domestic Semiconductor Manufacturing

Foxconn Secures Approval for New Semiconductor Plant in India May 15, 2025

India's government has approved a new semiconductor plant to be built by Foxconn, a major supplier for Apple. This joint venture with the HCL Group will receive a significant investment of $433 million from the Indian government and is expected to be operational by 2027 in Uttar Pradesh.

The facility is designed to produce up to 20,000 wafers per month, which can yield approximately 36 million display driver chips. Initially, it will function as a semiconductor assembly and test (OSAT) facility rather than a full chip fabrication plant.

This expansion aligns with Foxconn's plans to double iPhone production in India by the end of 2025. While there is no indication yet that the new plant will produce semiconductors specifically for Apple, Indian officials hope this deal will lead to the country manufacturing processors for the tech giant.

The project follows a previous plan by Foxconn to partner with Vedanta in 2022, which was later withdrawn due to unspecified reasons. HCL Infosystems, a subsidiary of the HCL Group, was previously an iPhone distributor in India but lost the contract in 2018 as Apple revised its distribution strategies.