India’s cabinet has approved a $435 million semiconductor plant in Uttar Pradesh, a joint venture between Apple supplier Foxconn and HCL Group, marking a significant step in India’s quest to become a global chipmaking hub.

The outsourced semiconductor assembly and test (OSAT) facility, set to be operational by 2027, will produce up to 20,000 wafers monthly, yielding approximately 36 million display driver chips annually for smartphones, TVs, and electronics.

The plant, located in Jewar near the upcoming Noida International Airport, aligns with India’s “Make in India” initiative and Apple’s strategy to diversify manufacturing from China. While not a chip fabrication unit, the facility will focus on packaging and testing, critical for supply chain resilience.

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Electronics Minister Ashwini Vaishnaw expressed hope that the partnership could eventually produce Apple processors domestically, though no direct sourcing by Apple is confirmed.

Foxconn’s move follows its 2022 withdrawal from a semiconductor venture with Vedanta, signaling renewed confidence in India’s tech ecosystem.

The company aims to double iPhone production in India by late 2025, leveraging Uttar Pradesh’s emerging semiconductor zone. HCL Group, previously an iPhone distributor in India until 2018, brings local expertise to the venture.

Despite former US President Donald Trump’s criticism of Apple’s India expansion, the approval underscores India’s growing role in global tech manufacturing, with the plant expected to create 2,000 jobs and enhance economic ties.

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