Foxconn, a key maker of Apple, has been approved by the India Council of Ministers to build a new 37 -billion semiconductor factory ($ 435 million) in a joint company with the country’s giant HCL. The deal is the latest move to reduce Apple’s dependence on China and producing more components in India.
The plant, which will be near the Jew Airport in the northern state of Uttar Pradesh and is expected to start operating in 2027, will eventually build mobile drivers, laptops, cars, computers and other devices, IT’s IT Ashwini Vaishnaw. Driver’s chip appearance handle how screens display images, text and videos.
However, since India does not currently have advanced chip construction facilities, this plant will not immediately make the chip manufacturing, but will initially be used as a semiconductor and test assembly unit (OSAT). This means that it will focus on providing packaging and testing services for brands made elsewhere, a senior employee confirmed to TechCrunch.
Vaishnaw, however, hopes that this is a step towards India that is developing its own FABs to build the chips that could supply Apple devices, starting with the screen chips on the screen that this installation will try.
‘Once this unit exists, the viewing table [manufacturing] It will also come to India, “Vaishnaw said, adding that” it will have a capacity of 20,000 plates a month and can produce 36 million units per month. “
However, the deal is yet another step towards the differentiation of Apple Manufacturing away from China and the deepening of links with India. This announcement of the agreement has come just a few days after Apple Tim Cook’s chief executive said Apple is handling trade uncertainties between the US and China to have India to make more construction and assembly.
The Cook at that time implied that the deepening of links with India would mean that Apple would not be forced to raise prices on its devices due to invoices, although the company is It is said to be thinking of weighing price increases anyway.
Apple has already doubled India for local iPhones assembly that exports to the US and other markets. The company also plans to expand India’s production base by making other devices including Airline.
The minister did not confirm the details of the incentives that the Indian government will offer to Foxconn in this consortium. Under the state semiconductorThe Indian government provides fiscal support that covers up to 50% of capital expenditure for a company for establishing facilities.
In January last year, a subsidiary of Foxconn Hon Hai Technology India Mega Development announced its plans to invest $ 37.2 million in a 40% share in the consortium with HCL.
Last approval comes eight months after New Delhi Greenlit A Proposal of Kaynes SemiconA subsidiary of Bengaluru’s Kaynes technology to create a semiconductor facility in the Sanand of the Western State of Gujarat with a proposed investment of 33 billion Indian rupees ($ 386 million).
In February last year, the Indian government approved the distribution of up to 1.26 trillion Indian Rapi ($ 15 billion) for the construction of the first three semiconductor plants under the $ 10 billion incentives.
The industry is currently awaiting news about what the second phase of the Indian government’s semiconductor incentives will include, although Vaishnaw refused to share details of it at a press conference on Wednesday.
