Foxconn Steps Up India Focus With Further $1.5-Bn Capex

New Delhi: Taiwanese tech giant Foxconn is investing another $1.5 billion to expand its operations in India, as the key supplier for Apple’s iPhones is looking to set up supply chains outside China. The Taiwanese tech giant said its Singapore-based arm has injected $1.5 billion into the company’s Indian subsidiary with the purchase of 12.7 billion shares. Foxconn’s Indian subsidiary Yuzhan Technology India, makes components for smartphones in Tamil Nadu.

The development comes close on the heels of the Indian government granting approval, last week, to Foxconn to build a semiconductor plant near the Noida airport as part of a Rs3,700 crore joint venture with the HCL Group.

The facility will produce display driver chips for mobile phones, laptops, automobiles, PCs, and various other display-equipped devices. It is designed to handle 20,000 wafers every month, with an output capacity of 36 million units per month.

“Already, five semiconductor units are in advanced stages of construction. With this sixth unit, Bharat moves forward in its journey to develop the strategically vital semiconductor industry,” according to an official statement.

India’s semiconductor landscape is taking shape with rapid momentum. Cutting-edge design infrastructure has been established in several states, with state governments actively encouraging design firms to set up operations.

At the academic and startup level, students and innovators across 270 institutions and 70 startups are developing advanced design technologies aimed at creating next-generation semiconductor products. Notably, 20 of these student-designed products have already been taped out at SCL Mohali, the government said.