It’s being reported this morning that Foxconn, the world’s largest contract electronics manufacturer, has received approval from the Indian government to build a semiconductor plant in a joint venture with HCL Group, drawing an investment of 37.06 billion rupees ($433 million).

The plant, which will be built in India’s northern state of Uttar Pradesh, will be operational by 2027, Ashwini Vaishnaw, India’s information minister, said in a cabinet briefing on Wednesday.

The deal comes as Apple  suppliers including Foxconn are increasingly turning to India in a shift away from China, amid persistent trade tensions between Beijing and Washington.

Vaishnaw said the facility will manufacture Foxconn’s display driver chips, which are used in mobile phones, laptops, automobiles, PCs, and other consumer electronics.

A presentation by the minister explained the plant will be designed to produce up to 20,000 wafers and 36 million display driver chips per month. Wafers are thin, circular slices of semiconductor material, usually silicon, which form the base of chips.

Apple reportedly has been striving to shift most of its iPhone production to India as its manufacturing in China faces threats from U.S. President Donald Trump’s tariffs on the country.

India could account for about 15%-20% of total iPhone production by the end of 2025, according to Bernstein analysts. Evercore ISI estimates that 10% to 15% of iPhones are currently assembled in India.

Though most of Apple’s most important products, such as smartphones and computers, received exemptions from Trump’s “reciprocal tariffs” last month, officials had warned that the exemptions could be temporary. For more, read the full CNBC report. 

While it was reported back in 2023 that Foxconn and STMicroelectronics teamed up to submit a bid to build a semiconductor plant in India, it appears that STMicroelectronics was replaced by the Indian conglomerate HCL Group.