HCL-Foxconn chip plant gets govt nod: Rs 3,706 crore investment, 2,000 jobs in Jewar

Once operational, the unit will produce display driver chips for use in mobile phones, laptops, automotive systems, personal computers, and other devices requiring display components.

Union Minister Ashwini Vaishnaw (File photo/ANI)

Image Credit: ANI

In a major boost to India’s semiconductor ambitions, the Union Cabinet has approved a joint venture between HCL and Taiwanese electronics giant Foxconn to set up a chip assembly and packaging unit in Uttar Pradesh. The plant, to be located near the upcoming Jewar airport within the Yamuna Expressway Industrial Development Authority (YEIDA) region, marks the sixth approved project under the Centre’s Rs 76,000 crore India Semiconductor Mission.

The new facility will see an investment of Rs 3,706 crore, of which approximately Rs 1,500 crore will be provided by the central government as part of its production-linked incentive (PLI) scheme for semiconductor manufacturing. Once operational, the unit will produce display driver chips for use in mobile phones, laptops, automotive systems, personal computers, and other devices requiring display components.

The plant is designed to handle 20,000 wafers per month and is expected to produce up to 36 million units monthly. According to Union IT Minister Ashwini Vaishnaw, commercial chip production from the unit is slated to begin in 2027. Once operational, the plant will fulfill nearly 40 percent of India’s domestic demand for display driver chips, with the remainder intended for export through Foxconn’s global supply chain.

This project marks Foxconn’s second attempt to enter India’s chip manufacturing sector. In 2022, the company had joined hands with Vedanta to establish a semiconductor fabrication unit in the country. However, the partnership dissolved in 2023 due to the inability to secure a viable technology partner and financial constraints on Vedanta’s part, particularly due to its mounting debt burden.

The new HCL-Foxconn venture reflects a renewed and more focused push by Foxconn to tap into India’s growing chip ecosystem. Notably, the Uttar Pradesh plant will be the first semiconductor facility in the state under the India Semiconductor Mission, which aims to establish India as a key player in the global semiconductor value chain.

So far, the mission has attracted over $18 billion in investments, with major players setting up manufacturing and testing units. These include the Tata-PSMC semiconductor fab in Gujarat, estimated at $11 billion, and projects by US-based Micron Technology, Tata Group, CG Power (in collaboration with Japan’s Renesas), Kaynes Semicon, and others. These projects are in various stages of development, with India expected to roll out its first indigenously manufactured chip later this year.