HCL-Foxconn plant reflects India’s growing maturity in semiconductor manufacturing

New Delhi, May 14 The Cabinet’s approval of the HCL-Foxconn chip plant reflects India’s growing maturity in semiconductor manufacturing -- with trusted partners, strategic intent and industrial scale, industry experts said on Wednesday.

The Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of the semiconductor unit in Uttar Pradesh under the India Semiconductor Mission (ISM) that would attract investment of Rs 3,700 crore.

This marks a strategic milestone in India’s semiconductor journey, said experts.

“With an investment of Rs 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,” said Ashok Chandak, President IESA and SEMI India.

Foxconn, one of the world’s largest electronics manufacturers, brings world-class expertise in chip packaging and testing core to the downstream semiconductor supply chain.

HCL Group, with its robust technology services, engineering strength, and global relationships, adds local execution capability and talent access.

“Together, this joint venture lays the foundation for India to emerge as a preferred global hub for semiconductor OSAT (Outsourced Semiconductor Assembly and Test) operations —aligning with the vision of ‘Make in India’ and ‘Make for the World’ with great support from the Centre and states,” Chandak said.

The plant near Jewar airport is designed for 20,000 wafers per month. The design output capacity is 36 million units per month. It will manufacture display driver chips for mobile phones, laptops, automobiles, PCs, and other devices that have display.

“This project can become landmark as it can create major value addition in India’s electronics manufacturing for mobiles, laptops, consumer and automotive, etc,” Chandak noted.

Five semiconductor units are in advanced stages of construction. With this sixth unit, “Bharat moves forward in its journey to develop the strategically vital semiconductor industry,” according to the Cabinet.

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