UP govt, Foxconn in discussion for setting up manufacturing unit

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The Uttar Pradesh government and iPhone maker Foxconn have started discussions to set up an electronics manufacturing unit in the state, sources aware of the development said.

The investment pitch was made by Invest UP to Foxconn at the time of the final land allocation for the HCL-Foxconn chip joint venture Vama Sundari.

"The Uttar Pradesh government through Invest UP is in discussion with Foxconn to get their electronics manufacturing unit in the state. During the discussion, the state government mentioned the availability of 300-acre land under Yamuna Expressway Industrial Development Authority (YEIDA)," a source said.

An official source at the Centre also confirmed that discussions have started to set up a Foxconn electronics manufacturing services unit in Uttar Pradesh.

"The discussions are at a very initial stage. There is no discussion on the type of products...Foxconn will manufacture," another source involved in the discussion said.

The query sent to the Uttar Pradesh government remained unanswered, while Foxconn did not comment on the development.

The Uttar Pradesh government has allocated 48 acres of land already for the Vama Sundari project in sector 28 of YEIDA.

The JV will initially invest Rs 3,706 crore in setting up an outsourced semiconductor Assembly and Test (OSAT) facility and expects to create around 4,000 jobs.

Foxconn is the biggest iPhone producer in the country.

According to ICEA, mobile phone exports from India have crossed an all-time high of Rs 2 lakh crore in FY 2024-25, a 55 per cent growth over the Rs 1.29 lakh crore recorded in FY 2023-24.

Union IT Minister Ashwini Vaishnaw has announced that the iPhone alone accounted for Rs 1.5 lakh crore worth of export in the smartphone segment.

Most of the mobile phone manufacturers like Samsung, Vivo, Oppo, Dixon, and Lava, among others, have their production units in Uttar Pradesh. The brands housed in Utter Pradesh jointly account for over 80 per cent of the country's smartphone market share.

ICEA estimates that India's mobile phone production is estimated to have reached Rs 5.25 lakh crore in 2024-25, up significantly from Rs 4.22 lakh crore in the previous fiscal.