iPhone maker gets Indian government’s backing for new chip plant
As former US President Donald Trump lashes out at Apple for shifting iPhone manufacturing to India, Apple’s key supplier Foxconn has quietly secured Indian government approval to set up a major semiconductor assembly and test facility in the country. The move signals a deepening of Foxconn’s commitment to India and is expected to play a pivotal role in bolstering the nation’s ambitions to become a global chipmaking hub.
$433 Million Government Backing for OSAT Facility
According to a report by CNBC, the Indian government has granted approval for a joint venture between Foxconn and India’s HCL Group to build the plant in Uttar Pradesh, a northern state that is quickly becoming a semiconductor development zone. The approval includes a government investment of $433 million, though the total cost of the project has not been disclosed.
Indian Minister for Electronics and Information Technology Ashwini Vaishnaw stated that the facility is expected to be operational by 2027, and will be capable of producing up to 20,000 wafers per month, which translates into a potential output of 36 million display driver chips annually.
Focus on Assembly and Testing, Not Fabrication
While the announcement is a major milestone for India’s semiconductor ecosystem, reports from TechCrunch clarify that this is not a chip fabrication plant. Instead, the upcoming facility will be an OSAT (outsourced semiconductor assembly and test) site. It will focus on packaging and testing chips, particularly display drivers used in smartphones, TVs, and other consumer electronics.
At present, there is no indication that Apple will directly source components from this new plant, but Minister Vaishnaw has expressed optimism, stating that India hopes this partnership will eventually lead to Apple processors being made domestically.
A Growing Footprint in India
This latest development comes as Foxconn pushes to double iPhone production in India by the end of 2025—part of Apple’s broader strategy to diversify its manufacturing away from China. Foxconn’s growing investments in the country are seen as a strategic alignment with both Apple’s supply chain goals and India’s push for “Make in India” self-reliance in high-tech manufacturing.
Foxconn previously announced a semiconductor joint venture with Vedanta in 2022, but withdrew from the deal in July of that year for unspecified reasons. The new alliance with the HCL Group could signal a course correction and renewed confidence in India’s long-term viability as a tech manufacturing powerhouse.
Notably, HCL Infosystems, a subsidiary of HCL Group, once distributed iPhones in India before losing its contract in 2018 as Apple reorganised its local distribution network.
As Foxconn ramps up its investments and production in India, tensions between the US and China, and now Trump’s public critic
