Apple's main maker Foxconn has received approval from the Indian cabinet to build a new INR 37 billion (US$435 million) semiconductor factory with the country's IT giant HCL Group. The deal is the latest move to reduce Apple's dependence on China and produce more components in India.

The factory will be located near Jewar Airport in Uttar Pradesh, the Uttar Pradesh state, and is expected to start operations in 2027 and will eventually manufacture driver chips for mobile phones, laptops, cars, cars, PCs and other devices. Indian IT Minister Ashwini Vaishnaw said at a press conference in New Delhi on Wednesday that Indian IT Minister Ashwini Vaishnaw said in a press conference on Wednesday that display driver chip processing screens show images, text and videos.

However, as India currently lacks advanced chip manufacturing facilities, the plant will not do chip manufacturing immediately, but will be used as a semiconductor component and test (OSAT) facility in the first place. This means it will focus on providing packaging and testing services for chips produced elsewhere and is confirmed to be a senior official at TechCrunch.

But Vaishnaw hopes it is a step towards developing its own factory in India to make chips that can power Apple devices, starting with the display panel chips the facility will test.

"Once the unit gets there, the display panel (manufacturing) will also come to India," Vaishnaw said.

Still, the deal is another step towards Apple's diversified manufacturing industry and deepening its ties with India. One way Apple is dealing with trade uncertainty between the United States and China is a few days later, Apple CEO Tim Cook said.

Cook at the time meant that deepening relations with India meant that Apple would not be forced to raise prices on its devices due to tariffs, although the company was said to be considering weighing the price increase.

Apple has already brought together local iPhones in India, which it exports to the U.S. and other markets. The company also plans to expand its manufacturing base in India by manufacturing other devices including AirPods.

The minister has not confirmed details of the Indian government will provide Foxconn's incentives in the joint venture. Under the state-owned semiconductor plan, the Indian government provides financial support, covering 50% of the capital expenditure of a company to build a facility.

Last January, Foxconn's subsidiary, the megade development project in India announced a planned investment of $37.2 million to jointly invest 40% with HCL.

The latest approval comes eight months after New Delhi Greenlit, a subsidiary of Bengal Keynes Technology, has proposed a proposal to build a semiconductor facility in Sanand, western Gujarat and a proposal to invest 33 billion rupees (US$386 million).

In February last year, the Indian government approved the allocation of up to INR 12.6 trillion (USD 15 billion) to build the first three semiconductor factories, which included its first semiconductor Fab facility under a $10 billion incentive plan announced in 2021.

The industry is currently expecting news about the second phase of the Indian government's semiconductor incentive plan, although Vaishnaw refused to share details about the plan at a press conference on Wednesday.