FoxConn, a key manufacturer of Apple, received an approval from the India cabinet to build a new 37 billion Indian rupees semiconductor system (435 million dollars) in a joint venture with the country’s HCL IT group. The agreement is the last move to reduce China’s dependence and produce multiple components in India.
The system, which will be located near Jewar airport in the northern state of Uttar Pradesh and should start working in 2027, in the end will produce drivers of drivers for cell phones, laptops, cars, PCs and other devices, said the minister of India Ashwini Vaishnaw during a press conference in New Delhi Wednesday. View managed chip drivers how the screens show images, text and videos.
However, since India currently does not have advanced chip manufacturing structures, this plant will not immediately make chip manufacture but, at the beginning, it will be used as a group structure and semiconductor tests (OSAT). This means that it will focus on the supply of packaging and chip test services that have been manufactured elsewhere, a high official has confirmed to Techcrunch.
Vaishnaw, however, hopes that this is a step towards India that develops their Fabs to create the chips that could power the Apple devices, starting from the chips of the display panel that this structure will be tested.
“Once this unit is there, the display panel (production) will also arrive in India,” said Vaishnaw, adding that “it will have a capacity of 20,000 wafer per month and can produce 36 million units per month”.
However, the agreement is still another step towards the manufacturing that diversify Apple away from China and deepening the links with India. This announcement of agreement came a few days after the Apple Tim Cook CEO said that a way Apple is managing the commercial uncertainties between the United States and China had to ensure that India makes more manufacturing and assembly.
Cook at that moment implied that the deepening of the ties with India would mean that Apple would not be forced to increase prices on its devices due to the rates, although the company is said to be considering the weighing of the increases in prices.
Apple has already doubled India for meeting locally iPhone that exports to the United States and other markets. The company also provides to expand its manufacturing base in India by creating other devices, including airpods.
The minister has not confirmed the details of the incentives that the Indian government will offer Foxconn in this joint venture. As part of the state semiconductor regime, the Indian government provides tax support that covers up to 50% of capital expenses for a company to instruct structures.
In January last year, FoxConn Hon have Technology Mega Development announced its plans to invest $ 37.2 million for a 40% participation in the Joint Venture with HCL.
The last approval comes eight months after the New Delhi Greenlit, a proposal by Kaynes Semicon, a Bengaluru kaynes technology, to create a Sanand semiconductor structure of the western state of Gujarat with an investment proposed by 33 billion of Indian rupees ($ 386 million).
In February last year, the Indian government approved by assigning up to 1.26 trillions of Indian rupees ($ 15 billion) to build the first three semiconductor plants as part of its 10 billion dollar incentives program announced in 2021, including its first semi -dductor FAB structure.
The industry is currently anticipating news about what the second phase of the program of incentives for semiconductors of the Indian government, although Vaishnaw has refused to share the details on this at Wednesday’s press conference.
