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In a strategic move to diversify its production footprint beyond China, Foxconn has committed another \$1.5 billion (around âš12,500 crore) to expand its operations in India. This investment was made through Foxconnâs Singapore-based arm, which purchased 12.7 billion shares in its Indian subsidiary, Yuzhan Technology India. Yuzhan, located in Tamil Nadu, plays a crucial role in Apple’s iPhone supply chain by manufacturing smartphone components. With this latest expansion, India now has six semiconductor projects in the pipeline, which is a promising step toward growing the country’s tech ecosystem.
Foxconn’s Partnership with HCL Group and Semiconductor Ambitions
Foxconn’s recent investment also follows a significant approval from the Indian government for the company to set up a state-of-the-art semiconductor manufacturing facility near Noida airport. This plant is a joint venture with the HCL Group, with an estimated value of âš3,700 crore. The facility will focus on producing display driver chips used in a wide range of devices, from smartphones and laptops to cars and various other electronic products. This plant is expected to process 20,000 wafers per month, yielding up to 36 million chips, which will likely boost Indiaâs electronic manufacturing capabilities significantly.
India’s semiconductor sector is receiving considerable attention, with over 270 academic institutions and 70 startups working on advanced chip designs. In fact, 20 chips designed by students have already been completed at the SCL Mohali facility, highlighting the growing talent pool and the country’s commitment to technological self-sufficiency. Global players like Applied Materials and Lam Research have also begun operations in India, while suppliers such as Merck, Linde, Air Liquide, and Inox are expanding their footprint to support this rapidly growing industry.
Foxconn’s Major 300-Acre Plant in Karnataka
Foxconnâs operations are further strengthened by its massive 300-acre plant in Devanahalli, Karnataka. This investment comes amid tensions in the global trade landscape, with some political leaders suggesting that companies like Apple should avoid building in India. Despite such comments, Apple remains committed to its plan of shifting a significant portion of iPhone production from China to India. Foxconnâs \$2.56 billion investment in the Devanahalli plant is part of Apple’s broader strategy to ensure greater supply chain diversification.
This plant, which is located about 34 km from Bengaluruâs Kempegowda International Airport, spans across the villages of Doddagollahalli and Chapparadahalli. The first phase of the project, set to run from 2023â24, has already received approximately âš3,000 crore in funding. Foxconn plans to invest another similar amount during the second phase of the project, running from 2026 to 2027. With these investments, Foxconn aims to produce around 100,000 iPhones at the Karnataka plant by December of this year. The presence of dormitories for workers within the facility reflects Foxconnâs standard operational model, which emphasizes workforce accommodation and a seamless production environment.
What Undercode Say:
Foxconnâs massive investments in India signal a broader trend where international manufacturing giants are increasingly looking to expand operations outside of China. The tech giantâs move aligns with the Indian governmentâs efforts to bolster its domestic semiconductor manufacturing capabilities, aiming for greater self-reliance in the electronics sector.
India is positioning itself as a viable alternative to China for global supply chains, especially in critical sectors like semiconductors and consumer electronics. With Foxconnâs deepening commitment to India, the country stands to benefit from new technologies, job creation, and a burgeoning ecosystem of startups and educational institutions focused on chip design. The Indian governmentâs initiatives, including the recent incentives for semiconductor production and infrastructure development, reflect a clear vision to transform India into a global tech hub.
The expansion of semiconductor manufacturing is also in line with Appleâs strategy to diversify its production outside of China. This move could have far-reaching effects not just on the tech industry but also on Indiaâs broader economy, potentially bringing in additional foreign investment and fostering a new generation of technological talent. With the ongoing construction of semiconductor units and the establishment of research facilities, India is positioning itself as an emerging player in the global chip-making industry.
Fact Checker Results:
Investment Scale:
Government Support: The Indian government has facilitated these investments by providing approval for Foxconn’s semiconductor facility near Noida.
Expansion in Karnataka: The Karnataka plant is part of a larger plan to ramp up iPhone production in India, which could reach 100,000 units by December 2025.
Prediction
Foxconnâs continued expansion in India, combined with the
References:
Reported By: timesofindia.indiatimes.com
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