Foxconn, the Taiwanese electronics giant and Apple's largest supplier, is currently in discussions with the Uttar Pradesh government regarding the establishment of a new electronics manufacturing unit in Greater Noida. This potential site, covering 300 acres along the Yamuna Expressway, would mark Foxconn's first facility in North India, significantly expanding its manufacturing footprint in the country.
According to a report by The Economic Times, this new facility could be larger than Foxconn's upcoming plant in Bengaluru, which is set to become the company's second-largest manufacturing site globally. Although specific product lines for the new facility have not yet been determined, the discussions signal Foxconn's commitment to diversifying its manufacturing operations in India.
A source familiar with the negotiations stated, "This facility has the potential to be slightly bigger than its upcoming facility in Bengaluru, which is set to become the company's second largest globally." The Indian government had previously proposed the land for a Foxconn Industrial Park project last year, indicating a strong interest in enhancing local manufacturing capabilities.
The land in question is managed by the Yamuna Expressway Industrial Development Authority (YEIDA), which is also home to a joint project between HCL and Foxconn that has already secured 50 acres for a semiconductor assembly and testing facility. This existing project is still awaiting government approval, adding another layer of complexity to the ongoing discussions.
As global supply chains continue to shift, driven by various geopolitical factors, Foxconn's move into North India appears to be a strategic response to current market conditions. The United States has imposed import tariffs ranging from 10 to 50 percent on various goods, while China faces a staggering 145 percent tariff. In contrast, India has a 26 percent tariff on its exports, making local manufacturing increasingly attractive for companies like Foxconn.
Analysts suggest that expanding operations in India could provide Foxconn with greater stability and access to new electronics manufacturing opportunities. The discussions between Foxconn and the Uttar Pradesh government are still in the early stages, and no definitive plans regarding specific products or customers have been established yet.
In addition to the potential new facility, Foxconn has been actively involved in other projects within India. The HCL-Foxconn joint venture, known as Vama Sundari, is set to invest ₹3,706 crore in establishing an outsourced semiconductor assembly and test (OSAT) facility, which is expected to create around 4,000 jobs. This project, located in sector 28 of YEIDA, has already been allocated 48 acres of land.
Union IT Minister Ashwini Vaishnaw recently highlighted the growth of mobile phone exports from India, which have reached an all-time high of ₹2 lakh crore in the fiscal year 2024-25, representing a 55 percent increase from the previous year. Notably, the iPhone alone accounted for ₹1.5 lakh crore worth of exports in the smartphone segment, underscoring the significance of Foxconn's operations in the country.
Foxconn's ongoing discussions with the Uttar Pradesh government reflect the broader trend of mobile phone manufacturers, including Samsung, Vivo, Oppo, Dixon, and Lava, establishing production units in the state. This influx of manufacturing capabilities is expected to bolster India's position in the global electronics market.
While the specifics of the new facility remain unclear, the potential for growth in India's electronics manufacturing sector is undeniable. As Foxconn continues to navigate the complexities of global supply chains and local regulations, its commitment to expanding operations in India could yield significant benefits for both the company and the local economy.
In summary, Foxconn's proposed investment in Greater Noida highlights the company's strategy to enhance its manufacturing capabilities in India amid shifting global trade dynamics. With the discussions still in their infancy, the future of this facility and its impact on the local economy remains to be seen, but the potential is substantial.
