Taiwanese electronics giant Foxconn Technology Group — one of the world’s largest electronics manufacturers and a key supplier for companies like Apple — is expanding its footprint in India’s rapidly growing semiconductor ecosystem with a new chip manufacturing facility. This move is part of India’s strategic effort to build a local semiconductor industry and reduce dependence on imports.
Government Approval and Investment
In May 2025, the Union Cabinet of India approved a semiconductor manufacturing unit to be set up in Jewar, Uttar Pradesh, through a joint venture between Foxconn and Indian IT firm HCL Group. The facility is expected to cost approximately ₹3,706 crore (about €430 million / US$435 million) and represents a major step under the government’s India Semiconductor Mission — a scheme aimed at building a domestic semiconductor supply chain.
What the Factory Will Do
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The Jewar facility will focus on manufacturing display driver chips, which are essential components used in devices such as smartphones, laptops, computers, and automobiles.
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The plant is designed to process 20,000 wafers per month and produce up to 36 million display driver chips monthly once fully operational.
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Commercial production is targeted to begin by 2027, aligning with India’s broader semiconductor capacity goals.
Strategic Importance
This factory marks the sixth semiconductor unit approved under the India Semiconductor Mission, a flagship initiative by the central government to attract global players and develop a comprehensive chip ecosystem in the country. The project is located near the upcoming Noida International Airport and the Yamuna Expressway Industrial Development Authority (YEIDA) region, positioning it close to major infrastructure links.
India currently imports the vast majority of its semiconductors and related components. Projects like the Foxconn-HCL joint venture are seen as critical to filling gaps in the electronics and display value chain, supporting local manufacturing and reducing import dependence.
Jobs and Local Incentives
The plant is expected to create around 2,000 direct jobs and bring additional economic activity through supplier networks, logistics, and ancillary industries around the Jewar region. To support the investment, the Uttar Pradesh government approved significant incentives, including a waiver on additional land costs and concessions on duties and stamp fees.
Why It Matters for India and Foxconn
For India, attracting a global electronics leader like Foxconn to build semiconductor capacity supports the government’s strategic vision of becoming a major electronics and semiconductor hub. It also dovetails with broader efforts to draw investments from global supply chains that are diversifying beyond China.
For Foxconn — known globally for contract manufacturing of electronics including iPhones — this project deepens its presence in India’s tech ecosystem and complements other investments such as smartphone assembly and electronics manufacturing operations being scaled up in the country.
Looking Ahead
As India continues to push for more chip manufacturing capabilities, projects like the Foxconn-HCL semiconductor facility signal a growing shift toward localized production of high-value technology components. With production planned to begin in 2027, the factory is expected to play a key role in the emerging semiconductor landscape, supporting both India’s industrial goals and global tech supply chain diversification.