Foxconn gets a 435 million dollar project to make more Apple chips in India, ultimately

Foxconn, the main manufacturer of Apple, obtained the approval of the Council of Ministers in India to build an Indian semiconductor factory 37 billion rupees ($ 435 million) in a joint venture with the country’s giant HCL. The deal is the last step to reduce Apple’s dependence on China and produce more components in India.

The Minister of Information Technology of India, Ashwini Fishnaw, told a press conference in New Delhi on Wednesday that the factory, which will be located near Gayar Airport in the northern state of Uttar Pradesh, is expected to start working in 2027, will eventually manufacture drivers chips for mobile phones, mobile computers, cars, computers and other devices. Display the driver’s chips deal with how to view screens, pictures, text and videos.

However, since India is currently lacking advanced chips manufacturing facilities, this factory will not manufacture chips immediately but will initially be used as an assembly facility and a semiconductor test (OSAT). This means that it will focus on providing packaging and testing services that were manufactured elsewhere, and a senior official emphasized Techcrunch.

However, VaishNaw hopes this is a step towards developing its India Fabs to make chips that can operate Apple devices, starting with the display panel chips that will be tested.

“Once this unit is present, the (manufacturing) show will also come to India,” VaishNaw said, adding that it “will have a capacity of 20,000 chips per month and can produce 36 million units per month.”

However, the deal is still another step towards Apple diversification of manufacturing away from China and deepening relations with India. The announcement of this deal came a few days after the CEO of Apple Tim Cook said One method that deals with Apple with an uncertain commercial Between the United States and China was to make India do more manufacturing and assembly.

Cooking at that time implicitly that deepening relationships with India means that Apple will not have to raise prices on its devices due to the definitions, although the company is It is said that he is considering increasing the price of prices anyway.

Apple already has Double on India To assemble iPhone to locally Exports to the United States And other markets. The company also plans to expand the manufacturing base in India by making other devices, including AirPods.

The minister did not confirm the details of the incentives that the Indian government will provide in this joint project. Under the leadership of the state SemiconductorThe Indian government provides financial support that covers up to 50 % of the company’s capital expenditures to create facilities.

In January of last year, Hon Hai Technology India Mega Development, Foxconn, announced its plans Invest $ 37.2 million for a 40 % stake In the joint project with hydrochloric acid.

The last approval comes after eight months from New Delhi Greenlet A. A suggestion from Kaynes SeiconIt is a subsidiary of Bangaluru technology in Bangaluru, to create a semiconductor facility in St. in West Gujarat, with an investment of a proposed 33 billion Indian rupees ($ 386 million).

In February last year, the Indian government It is approved to allocate up to 1.26 trillion Indian rupees (15 billion dollars) to build the first three semiconductor factories under the incentive program of $ 10 billion in 2021, including its first facility in semiconductors.

Industry is currently expecting news about the second stage of the semiconductor incentives program in the Indian government, although Vaishnaw has refused to share details about this at the press conference on Wednesday.