TAIPEI (Taiwan News) — India on Wednesday approved a joint venture factory between Foxconn and IT firm HCL Group worth NT$13.13 billion (US$435 million).

The factory, to be located in Uttar Pradesh, will produce 20,000 wafers per month and supply display driver chips for mobile phones, laptops, and cars, per Nikkei Asia. It is expected to begin operations in 2027 and marks Foxconn’s second attempt at chipmaking in India, per Reuters.

Electronics Minister Ashwini Vaishnaw said the plant will not only serve Foxconn’s global demand but could also attract display panel manufacturers to India. “This is a critical step in developing the semiconductor ecosystem,” he said at a press briefing in New Delhi.

India has so far approved six chip fabs under its US$10 billion semiconductor incentive program launched in 2021. Others include Tata Group’s fabrication plant with Taiwan’s Powerchip in Gujarat and a separate Tata assembly unit in Assam.

Despite generous subsidies covering up to half of project costs, India’s initial foray into chipmaking saw several proposals – including a US$19 billion Vedanta-Foxconn joint venture and a Tower Semiconductor-backed ISMC plan – fail to materialize.

Vaishnaw called HCL “a very good partner” with deep experience in electronics manufacturing, and praised the joint venture as more viable than past efforts. He declined to say whether more incentives would be introduced.