Foxconn to Establish Its First Independent Manufacturing Unit in Uttar Pradesh

KKN Gurugram Desk | In a significant move that could redefine the industrial landscape of Uttar Pradesh, global electronics manufacturing giant Foxconn is preparing to establish its first independently-operated manufacturing unit in the state. Known globally for assembling Apple iPhones and other major electronics products, Foxconn is reportedly in talks to acquire 300 acres of land in Greater Noida, along the Yamuna Expressway, to set up this facility.

This marks the first time that the Taiwan-based company will independently invest in a full-scale manufacturing project in UP, without any joint ventures.

Why This Move Is Crucial for India

India’s electronics manufacturing sector is witnessing a transformation, with international players shifting operations from China to India amid global geopolitical and supply chain disruptions. With Apple significantly ramping up its iPhone production in India, Foxconn’s expansion into Uttar Pradesh aligns with the Indian government’s “Make in India” and PLI (Production Linked Incentive) schemes.

Key Highlights:

• Foxconn may establish a plant on 300 acres in Greater Noida.

• It would be the company’s first stand-alone facility in Uttar Pradesh.

• The unit could be larger than Foxconn’s upcoming factory in Bengaluru.

• Foxconn already manufactures for Apple, Microsoft, and Sony.

• India is emerging as a major hub for global electronics manufacturing.

Proposed Location: Greater Noida Near Yamuna Expressway

According to sources cited by The Economic Times, the proposed site is located alongside the Yamuna Expressway, which connects Greater Noida to Agra. The Yamuna Expressway Industrial Development Authority (YEIDA) is overseeing the land acquisition and infrastructure planning.

This region is fast becoming an industrial and logistics hub, with proximity to:

• The upcoming Jewar International Airport

• The Noida and Greater Noida Expressway

• Key freight and road transport corridors

Notably, HCL-Foxconn has already acquired 50 acres in the same area for an OSAT (Outsourced Semiconductor Assembly and Test) facility. This proximity offers strong synergy for future expansion in semiconductor packaging and testing services.

Uncertainty Over Product Line but Big Expectations

Although specific details about what will be manufactured at the new facility have not been confirmed, the scale of investment suggests it could be a diverse electronics hub. Potential products could range from smartphones and tablets to televisions and semiconductors.

Sources indicate that the Greater Noida plant may even outsize Foxconn’s upcoming factory in Bengaluru, which is being dubbed the company’s second-largest globally.

Why Uttar Pradesh? Strategic and Economic Advantages

According to Neil Shah, Vice President at Counterpoint Research, Foxconn’s decision is driven by multiple factors:

“Given global tariffs and supply chain dynamics, India is the most attractive destination right now for EMS (Electronics Manufacturing Services).”

Shah adds that Noida offers:

• A rapidly growing infrastructure

• Access to skilled local talent

• A robust supplier ecosystem

• Strategic proximity to northern and central India

By setting up in different parts of the country (Tamil Nadu, Karnataka, and now UP), Foxconn diversifies its risk and gets closer to regional customer bases, which is crucial for sectors like smart devices, EVs, and industrial electronics.

A Part of Broader India Strategy

Foxconn already operates major facilities in Tamil Nadu, Telangana, and Karnataka. The company has reportedly shut down its operations in Sri City, Andhra Pradesh, but is doubling down on investments elsewhere.

This strategic shift is part of Foxconn’s India 2.0 expansion, where it aims to move beyond just smartphone assembly.

In 2023, during his India visit, Young Liu, Foxconn’s Chairman, stated:

“India is not just a manufacturing destination for smartphones, but a future center for ICT (Information and Communications Technology), Electric Vehicles (EV), energy solutions, and digital healthcare.”

India’s iPhone Production on the Rise

Apple has significantly increased its iPhone production in India, with over $22 billion worth of iPhones manufactured in the country last year. According to reports, 1 out of every 5 iPhones is now “Made in India” — a milestone in reducing reliance on China.

This shift enhances India’s role as a global manufacturing alternative, particularly for high-tech and consumer electronics.

Semiconductor Ecosystem Coming to Life

The OSAT facility being developed in conjunction with HCL is expected to strengthen India’s nascent semiconductor ecosystem. OSAT facilities are critical for packaging and testing chips — a key step in the semiconductor value chain.

While the project still awaits government approvals, its location next to the proposed Foxconn factory can lead to synergies in R&D, logistics, and component sourcing.

India as a Global Export Hub

According to Prabhu Ram, VP at CyberMedia Research:

“India’s domestic market is robust, but the bigger story is its emergence as an export hub. As global supply chains evolve, India is reaping the benefits.”

Foxconn’s growing investment is seen as a strong indicator of India’s credibility in the global manufacturing arena.

Challenges & Opportunities

Despite the enthusiasm, several questions remain:

• Will the land acquisition and regulatory approvals be timely?

• Can the required talent and ecosystem scale quickly enough?

• How will infrastructure bottlenecks be addressed?

However, given UP’s growing political push for industrial development, and its ambitious targets under the Electronics Manufacturing Policy, Foxconn’s investment is likely to receive state-level support and facilitation.

Foxconn’s plan to establish an independent manufacturing unit in Uttar Pradesh is a landmark development for both the state and the country. If realized, the project will:

• Generate thousands of direct and indirect jobs

• Spur infrastructure development in the region

• Elevate India’s position in the global electronics supply chain

• Boost exports and reduce dependency on imports