India’s semiconductor push gets a boost: HCL-Foxconn JV to set up Rs 3,700 cr unit in UP, create 3,500 jobs
India’s semiconductor ambitions received a significant boost as the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the establishment of a new semiconductor unit under the India Semiconductor Mission. The facility will be set up near the upcoming Jewar Airport in Gautambuddh Nagar, Uttar Pradesh, under the jurisdiction of the Yamuna Expressway Industrial Development Authority (YEIDA).
HCL-Foxconn Joint Venture to Lead Development
The new unit is a joint venture between HCL and Taiwanese electronics major Foxconn. According to Roshni Nadar Malhotra, Chairperson of HCLTech, the semiconductor plant is expected to generate over 3,500 jobs, driving economic activity and high-tech employment in the region. The unit will see an investment of Rs3,700 crore.
Strategic Manufacturing Focus
The plant is designed to manufacture display driver chips, essential components used in a wide range of devices such as smartphones, laptops, automobiles, PCs, and consumer electronics. It will have the capacity to handle 20,000 wafers per month, with a design output of 36 million chips per month—a significant addition to India’s chip-making capabilities.
Part of a Broader National Vision
This new facility is the sixth semiconductor unit approved under the India Semiconductor Mission. The five previously approved units are already in advanced stages of construction. A statement from the Press Information Bureau (PIB) noted: “With this sixth unit, Bharat moves forward in its journey to develop the strategically vital semiconductor industry.”
Ecosystem Development in Full Swing
India’s semiconductor ecosystem is witnessing robust development across the country. World-class design facilities are being established in several states, with state governments actively courting chip design firms.
In parallel, innovation is being fostered in academic institutions and startups. “Over 270 academic institutions and 70 startups are working on cutting-edge chip design technologies. So far, 20 products developed by students have been taped out by the Semiconductor Laboratory (SCL) in Mohali, indicating promising indigenous capabilities.”
Global Tech Giants Strengthen India Presence
Leading global equipment and materials suppliers are also setting up operations in India to support the growing semiconductor sector. Companies such as Applied Materials and Lam Research—two of semiconductor equipment manufacturers—now have a presence in India. Chemical and gas suppliers including Merck, Linde, Air Liquide, and Inox are also scaling up to meet industry demand.
Rising Demand Fuels Momentum
The semiconductor industry’s expansion comes amid surging demand across sectors like mobile phones, laptops, servers, medical devices, defence equipment, power electronics, and consumer electronics manufacturing. This has underscored the need for a robust, self-reliant semiconductor supply chain in India.