Dhaka, May 15 (V7N) — Foxconn, the world’s largest electronics contract manufacturer, has received official approval to build a semiconductor manufacturing plant in the Indian state of Uttar Pradesh. The project is a joint venture with India’s HCL Group and will cost approximately 3,700 crore rupees (about 435 million US dollars), according to a report by CNBC News on Thursday (May 15).

Indian Information Technology Minister Ashwini Vaishnav announced the approval during a cabinet briefing on Wednesday (May 14). The plant is expected to be operational by 2027 and will produce Foxconn’s display driver chips, which are essential components for mobile phones, laptops, automobiles, PCs, and other consumer electronics.

The minister revealed that the facility will have the capacity to manufacture 20,000 wafers and 36 million display driver chips per month. Wafers are thin, circular silicon discs that serve as the foundational material for semiconductor chips.

This move comes amid ongoing trade tensions between China and the United States, which have prompted Apple and its suppliers, including Foxconn, to gradually shift production away from China towards India. Apple is currently increasing its iPhone production in India, with Bernstein analysts projecting that 15-20% of iPhone production could be based in India by the end of 2025. Evercore ISI estimates that 10-15% of iPhones are currently assembled in India.

Last month, Apple’s major products such as smartphones and computers were temporarily exempted from the US "reciprocal tariffs" imposed under former President Donald Trump. However, concerns remain as the US Department of Commerce is conducting a national security investigation into semiconductor imports, which could lead to new tariffs.

Under the Trump administration, Chinese imports faced an additional 30% tariff, while countries like India and Vietnam were subjected to a 10% tariff. The shift in manufacturing locations is seen as a strategic response to these trade policies.

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