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India Approves $4.6 Billion in Electronic Component Manufacturing Projects

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India has approved electronic component manufacturing projects worth 418.63 billion rupees ($4.64 billion) under a government incentive programme aimed at strengthening domestic production, the country’s IT ministry said on Friday.

Global and domestic players including Samsung Electronics, Tata Electronics and Foxconn are among the companies whose proposals were cleared to receive subsidies under the Electronics Component Manufacturing Scheme. The scheme has a total outlay of 229.19 billion rupees and is designed to expand local capacity in key segments of the electronics supply chain.

The approved projects cover the production of a wide range of components, including mobile phone enclosures, camera sub-assemblies and other critical electronic parts. According to the IT ministry, the projects will be implemented across eight Indian states, reflecting a geographically diversified push to scale up manufacturing.

India has intensified efforts in recent years to build a globally competitive electronics manufacturing ecosystem. Through a series of incentive programmes, the government aims to attract both international and local investors, reduce reliance on imports and strengthen supply chains across multiple technology sectors.

The country’s electronics manufacturing sector produced goods worth about $125 billion in the year ended March 2025. The government has set an ambitious target to raise output to $500 billion by fiscal year 2031, positioning electronics as a key pillar of India’s industrial growth strategy.

Officials said the newly approved projects are expected to generate electronic components worth 2.58 trillion rupees ($28.62 billion) over time and create employment for around 34,000 people, providing a significant boost to manufacturing jobs and regional development.

India downplays Foxconn disruption from Chinese staff pullback

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India’s government said Foxconn’s operations in the country remain largely unaffected despite the company recalling some of its Chinese engineers and technicians in recent months.

S. Krishnan, secretary at the Ministry of Electronics and Information Technology, told reporters in Taipei that Foxconn had managed the adjustment smoothly, relying on staff from Taiwan, the U.S., and local Indian workers to keep production stable. “Operations did not really suffer significantly,” he said.

Foxconn, Apple’s top iPhone assembler, has been expanding in India as part of efforts to diversify production away from China, particularly amid the risk of triple-digit U.S. tariffs on Chinese goods. The company already runs a plant near Chennai and is building another near Bengaluru.

Bloomberg previously reported that hundreds of Chinese employees were asked to return home, though the reasons remain unclear. Both Foxconn and Apple declined to comment.

The backdrop includes lingering India-China tensions since their 2020 border clash, which led New Delhi to tighten restrictions on Chinese firms and ban dozens of Chinese apps. Relations have warmed somewhat, with Indian Prime Minister Narendra Modi meeting President Xi Jinping last month in Beijing for the first time in seven years.

Krishnan emphasized that Foxconn is “committed to see through all the investments in India,” noting its expansion has been “very significant.”

India Approves $435 Million HCL-Foxconn Semiconductor Plant Near Jewar Airport

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India’s federal cabinet has approved a new ₹37.06 billion ($435 million) semiconductor plant — a joint venture between HCL Group and Taiwan’s Foxconn — as part of the India Semiconductor Mission, Information Minister Ashwini Vaishnaw announced on Wednesday.

The plant will be built near Jewar airport in Uttar Pradesh, and is expected to have a monthly capacity of 20,000 wafers, enabling the production of 36 million display driver chips annually. The facility will begin commercial production in 2027, becoming the sixth project approved under India’s national semiconductor initiative.

“This marks another significant step in our journey to build a robust semiconductor ecosystem in India,” Vaishnaw said at the cabinet briefing in New Delhi.

A Strategic Push Toward Chip Self-Sufficiency

Prime Minister Narendra Modi has made semiconductor manufacturing a key pillar of India’s economic growth strategy, aiming to turn the country into a global electronics manufacturing hub. Despite heavy investments and multiple proposals, India currently has no operational chip fabrication facility.

Mixed Results in India’s Semiconductor Drive

The HCL-Foxconn announcement comes amid a series of starts and stalls in India’s semiconductor ambitions:

  • Adani Group recently paused talks with Israel’s Tower Semiconductor on a $10 billion chip project, after internal concerns about commercial demand.

  • A $19.5 billion joint venture between Foxconn and Vedanta collapsed in 2023 due to cost overruns and delays in receiving government incentives.

  • Still, progress continues with other ventures:

    • Tata Group is moving ahead with an $11 billion chip fabrication and testing facility.

    • Micron Technology (U.S.) is developing a $2.7 billion chip packaging plant in India.

Industry Implications

The HCL-Foxconn facility’s focus on display driver chips—critical components for screens in smartphones, tablets, and TVs—comes at a time when global supply chains are realigning away from dependence on China and Taiwan.

By 2027, the new plant could help fill both domestic and export demand for mid-range semiconductor components, while adding momentum to India’s long-term goal of building a self-reliant semiconductor ecosystem.