The Union Cabinet, led by Prime Minister Modi, has approved the setting up of a semiconductor unit under the India Semiconductor Mission. The unit, a joint venture between HCL and Foxconn, is expected to attract an investment of ₹3,700 crore.
The two companies will set up the plant near Jewar airport in the Yamuna Expressway Industrial Development Authority (YEIDA) in Uttar Pradesh.
The plant is designed to manufacture 20,000 wafers each month, with a design output capacity of 36 million units per month. It will manufacture display driver chips for mobile phones, laptops, automobiles, PCs, and other devices that have a display.
According to the Ministry of Electronics and IT, five other semiconductor units are already in advanced stages of construction. HCL has a history of developing and manufacturing hardware, while Foxconn is a major global electronics manufacturer.
Commenting on this, Ashok Chandak, President, IESA and SEMI India, said, “The Cabinet’s approval of the HCL–Foxconn OSAT joint venture marks a strategic milestone in India’s semiconductor journey. With an investment of ₹3,700 crore, the project brings large-scale advanced packaging and testing capabilities specifically for display driver ICs, addressing a critical gap in India’s display and electronics value chain. This isn’t just about building infrastructure — it reflects India’s growing maturity in semiconductor manufacture, with trusted partners, strategic intent, and industrial scale.”
With the demand for semiconductors increasing with the rapid growth of laptops, mobile phones, servers, medical devices, power electronics, defence equipment, and consumer electronics manufacturing in Bharat, this new unit is said to add to the Prime Minister’s vision of Atmanirbhar Bharat.
As the country moves forward in semiconductor journey, the eco system partners have also established their facilities in India. Applied Materials and Lam Research are two of the largest equipment manufacturers. Both have a presence in India now. Merck, Linde, Air Liquide, Inox, and many other gas and chemical suppliers are gearing up for growth of our semiconductor industry.
With the demand for semiconductor increasing with the rapid growth of laptop, mobile phone, server, medical device, power electronics, defence equipment, and consumer electronics manufacturing in Bharat, this new unit will further add to India's vision of Atmanirbhar Bharat.