Foxconn, HCL Approved for $435M Chip Plant to Boost Apple Supply in India
- Foxconn and HCL will invest $435 million in a semiconductor plant near Jewar, Uttar Pradesh, to produce display driver chips.
- The facility will start as an OSAT unit in 2027, with a capacity of 20,000 wafers and 36 million chips per month.
- The project supports Apple’s supply chain diversification and India’s ambitions to become a semiconductor manufacturing hub.
Foxconn, Apple’s key manufacturing partner, has won approval from India’s cabinet to build a $435 million semiconductor plant in partnership with HCL Group.
The facility, to be located near Jewar airport in Uttar Pradesh, is expected to begin operations in 2027 and will focus on producing display driver chips for smartphones, laptops, automobiles, and other devices.
Initially, the plant will operate as an Outsourced Semiconductor Assembly and Test (OSAT) facility, providing packaging and testing services for chips manufactured elsewhere, as India currently lacks advanced chip fabrication capabilities.
The plant is designed to handle 20,000 wafers per month, with a projected output of 36 million chips monthly.
This development is part of India’s broader push to become a global semiconductor manufacturing hub and reduce reliance on imports.
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The government is offering incentives covering up to 50% of capital expenditure under its semiconductor mission.
The Foxconn-HCL project is the sixth semiconductor unit approved under this initiative.
The move aligns with Apple’s strategy to diversify its manufacturing footprint beyond China amid global trade uncertainties. Apple has already expanded iPhone assembly in India and is planning to manufacture more devices locally.
Edited by Annette George
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