Cabinet Approves HCL-Foxconn Semiconductor Plant in Jewar, Uttar Pradesh

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The Union Cabinet on Wednesday gave the green light for a new semiconductor manufacturing facility to be established by Indian technology giant HCL in partnership with Taiwanese electronics manufacturer Foxconn. The project is part of the government’s India Semiconductor Mission (ISM) and will be located near Jewar airport in Uttar Pradesh, within the Yamuna Expressway Industrial Development Authority (YEIDA) region.

IT Minister Ashwini Vaishnaw announced the approval, highlighting that this facility will mark the sixth semiconductor unit planned under ISM, with commercial production expected to commence in 2027. The plant will function as an Outsourced Semiconductor Assembly and Test (OSAT) unit, specializing in the assembly of display driver integrated circuits (ICs), critical components that control how images and graphics are displayed on screens in devices like smartphones, laptops, and computers.

“This is Foxconn’s second attempt to establish a semiconductor unit in India under the ISM after a previous partnership with Vedanta in 2023 did not materialize,” Vaishnaw explained. He further noted HCL’s long-standing expertise in electronics and computer manufacturing and mentioned the use of advanced wafer-level packaging technology tailored specifically for display driver chips.

The new facility is designed to process 20,000 wafers per month with a production output capacity of 36 million units monthly. It is expected to meet around 40% of India’s domestic demand for display driver ICs and also support Foxconn’s global supply chain requirements.

While the total investment of approximately ₹3,706 crore was announced, the exact division of investment between HCL and Foxconn remains undisclosed, and both companies have yet to comment on the project.

Over the last decade, India’s electronics manufacturing output has grown fivefold, and this new unit is expected to further boost the country’s capabilities in semiconductor manufacturing. The government aims to increase the value addition in electronics manufacturing from the current 20% to over 35% by 2030.

The India Semiconductor Mission, launched in 2021 with an outlay of ₹76,000 crore, currently supports six semiconductor projects eligible for central and state subsidies aimed at developing a robust semiconductor and display manufacturing ecosystem in India.

Alongside the new HCL-Foxconn facility near Jewar, other semiconductor units under ISM include three in Gujarat’s Sanand — Micron’s ATMP (Assembly, Testing, Marking, and Packaging) unit, CG Power-Renesas’ ATMP unit, and Kaynes Semicon’s OSAT unit. The Tata-PSMC fabrication plant in Gujarat’s Dholera, India’s only semiconductor fabrication plant, and the Tata ATMP unit in Assam’s Morigaon complete the list.

While details about the launch of ISM’s next phase, ISM 2.0, remain under wraps, the government’s priority remains the successful execution of existing projects.

Sources By Agencies