Prime Highlights

• Foxconn will establish a stand-alone manufacturing plant in Greater Noida, Uttar Pradesh.
• The plant could be larger than its new Bengaluru plant, one of the largest in the world for the company.

Key Facts

• Foxconn is close to purchasing 300 acres of land on the Yamuna Expressway.
• The site provides strategic proximity to new Jewar airport and Noida-Greater Noida Expressway.
• The facility will be distinct from Foxconn’s current joint venture with HCL for the manufacturing of semiconductors.

Key Background

Foxconn, the largest contract electronics manufacturer globally and one of the principal suppliers of Apple, is making huge strides in increasing its footprint in manufacturing in India. Foxconn is negotiating to buy 300 acres of land along the Yamuna Expressway in Greater Noida, its first large single investment in northern India. Foxconn’s new intended plant will likely be at the center of the company’s diversification of operations in India away from smartphones into newer sectors like electric vehicles and digital health.

The intended location is strategically positioned close to the new Jewar international airport and highways and provides logistical benefits suited for Foxconn’s growth strategy. The location is situated under the Yamuna Expressway Industrial Development Authority (YEIDA), which has been aggressively marketing industrial growth in the area. Acquisition of the land continues, though a final determination has not been made regarding the kind of products or customers the new factory will supply.

This is one of the efforts of Foxconn to de-risk its supply chain by declining dependence on China amid continued geopolitical turmoil. The company is also considering other initiatives in other parts of India. In Tamil Nadu, it is considering a $1 billion investment for a smartphone display module assembly plant. In Karnataka meanwhile, Foxconn’s unit Foxconn Industrial Internet (Fii) is gearing up to open a new plant in Tumakuru for about ₹8,800 crore, which will generate about 14,000 jobs.

Apart from that, Foxconn has also tied up with HCL for a testing and assembly unit of semiconductors as well, which is being contemplated in the same premises. The Greater Noida campus would, however, be an entirely standalone set-up, thereby qualifying as a standalone-foray strategic initiative by Foxconn. To concentrate on potential high-growth segments such as EVs and health tech demonstrates the company’s commitment in India’s growth strategy for the long term.

This development is in line with India’s “Make in India” policy to invite foreign investment and establish India as a manufacturing base. With the Indian government also promoting electronics manufacturing through incentives and infrastructure facilities, Foxconn’s fresh Uttar Pradesh plans may be a game-changer in India’s industrial expansion.