Foxconn Eyes First North India Plant Along Yamuna Expressway
In a major breakthrough for India's electronics manufacturing sector, Taiwanese technology behemoth Foxconn, the biggest supplier to Apple, is set to open its first factory in North India. According to a report by The Economic Times, the company is mulling taking over 300 acres of land on the Yamuna Expressway in Greater Noida, Uttar Pradesh, for the new factory.
The planned factory would likely be bigger than Foxconn's new Bengaluru plant, which will be the company's second-largest in the world. While talks are preliminary, the move indicates Foxconn's plans to increase its footprint in India as the world's supply chains realign and tariffs on Chinese imports rise.
Although it is not yet known what products will be produced at the planned factory, the company is in constant negotiations with the Indian government. The project is one of a series of moves by both Foxconn and Apple to diversify their supply chains and cut reliance on China.
The land in question falls under the Yamuna Expressway Industrial Development Authority (YEIDA) area, which is quickly developing as the center for electronics and semiconductor units. Significantly, a 50-acre zone in the same area has already been leased out to a joint venture between HCL and Foxconn for a semiconductor test and assembly plant, which awaits government sanction.
The Indian government had suggested last year the possibility of a 300-acre Foxconn Industrial Park in the area. A source in the report stressed that talks are still in preliminary stages, with no firm decisions yet taken on production lines or target customers.
Foxconn's action is at a time when geopolitical tensions and trade policies are redefining global manufacturing strategies. The U.S. has slapped high tariffs on Chinese imports up to 145 percent in some cases causing companies to seek alternative production bases. While India has a 26 percent tariff on its exports, a temporary 90-day tariff holiday has been announced for a number of countries.
Foxconn has already set up manufacturing facilities in Tamil Nadu, Karnataka, and Telangana. It just shut down its Sri City unit in Andhra Pradesh, highlighting its new focus on high-potential states such as Uttar Pradesh.
