India approves a joint venture Chip Apple-Sulier Foxconn at $ 433 million

Foxconn, The world’s largest electronics contract manufacturer has received permission from the Indian government for the construction of a semiconductor plant in a joint venture with HCL Group, entering an investment of Rs 37.06 billion ($ 433 million).

The factory, which will be built in the Northern state of Uttar -Pradesh in India, will work until 2027, said Indian Information Minister Ashvini Vaishnau, said at a briefing on Wednesday.

Vaishnaw said the facility would produce the Foxconn display chips used in mobile phones, laptops, cars, PCs and other household electronics.

According to the Minister’s presentation, the plant will be designed to produce up to 20,000 plates and 36 million drivers per month. Warm – thin, round slices of semiconductor material, usually silicon that forms the basis of chips.

The deal comes as Apple Suppliers, including Foxconn, are increasingly turning to India in the abandonment of China, among the constant trade tensions between Beijing and Washington. However attracting chips into the country was a complex and prolonged process.

Taiwan Foxconn, officially known as Hon Hai Technology Group, first started producing iPhones in India in 2019 and increased by power in recent years, especially after experience Production delays related to pandemic in China in 2022.

In 2023 the company pulled out of a joint venture With Indian metals to the Knowanta conglomerate oil, she created a semiconductor and demonstration plant in the country as part of a transaction of $ 19.5 billion.

Apple is reportedly aspiring Translate most of the iPhone production US Donald Trump in the country is faced with the threats of US President Trump’s tariffs in China.

India may consider About 15% -20% of the total iPhone production By the end of 2025, according to Bernstein -onalitikov. Evercore ISI estimates that India is currently assembled from 10% to 15% iPhones.

Although most important Apple products such as smartphones and computers have got Exceptions from “mutual tariffs” Trump last monthOfficials warned that the release could be temporary.

The US Department of Trade there is Conducting a National Security Investigation Import semiconductor technology and related products down, which can lead to new tariffs.

American imports from China during Trump’s current term face 30% of additional tariffs, and for most other countries is 10%, including in India and Vietnam.

Analysts have Previously told CNBCTrump’s tariff policy is expected to speed up Apple’s efforts to switch production to India.

India conducts foxconn as part of its “A semiconductor mission“What is aimed at creating strong chips and displaying an ecosystem in the country. The joint venture Foxconn will be the sixth semiconductor block that will be built as part of the plan.

– Arjun Harpal made this report in this report.