Prime Highlights :
HCL and Foxconn get Indian government clearance for ₹3,706 crore ($435 million) Uttar Pradesh chip packager factory.
The factory, near Jewar Airport, will start production by 2027 and supply chips for Apple devices.
Key Facts :
The factory will make 36 million display driver ICs every month and process 20,000 wafers every month.
To create about 2,000 jobs in the Yamuna Expressway Industrial Development Authority (YEIDA) area.
Main Background :
World’s top contract electronics manufacturer Foxconn and Apple’s largest supplier has joined forces with India’s HCL Group to set up a $435 million chip-packaging and testing plant in Uttar Pradesh. The Indian government has cleared the project as part of its larger push to build a strong indigenous semiconductor ecosystem.
The new facility will be utilized for the offering of outsourced semiconductor assembly and test (OSAT) services, sophisticated chip packaging and not chip fab. The distinction is important in as much as India has no commercial-scale chip fab factories currently, therefore OSAT is a great starting point for entry into the world semiconductor value chain.
Situated around the new Jewar Airport, the unit is advantageous in that it is situated in the YEIDA industrial complex and has good connectivity and logistics. The factory will enter production in 2027 and will make around 36 million display driver integrated circuits every month. The units are of utmost significance in electronics like smartphones, tablets, and cars.
Government sanction is a milestone on the path of India becoming a hub for producing semiconductors, electronics, and high-tech components. It is also consistent with Apple’s long-standing attempt to diversify its supply chain and further anchor itself in India and decrease China dependence during periods of geopolitical risk.
With poaching of class-of-best foreign players such as Foxconn and taking advantage of local alliances with HCL and other similar players, India is trying to close the technology and infrastructure deficit that has till now been a nuisance while chasing its dream for a semiconductor. The move also translates into the creation of about 2,000 direct employment opportunities, pushing employment as well as developing capability in the technology industry in the region.
This project brings India one step nearer to its target of being among the world’s leading chip makers and its economic growth and supply chain security implications.
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