Cabinet Clears HCL-Foxconn JV Semiconductor Plant in Uttar Pradesh

On May 14, 2025, the Union Cabinet approved the setting up of a semiconductor unit in Uttar Pradesh under the India Semiconductor Mission. The plant will be developed through a joint venture between HCL Group and Foxconn, with a proposed investment of ₹3,706 crore. It will be located near the upcoming Jewar airport in the Yamuna Expressway Industrial Development Authority (YEIDA) region.

Manufacturing and Capacity

The unit will manufacture display driver chips used in mobile phones, laptops, PCs, automobiles, and other devices with display components. The plant is designed for 20,000 wafers per month.  The design output capacity is 36 million units per month.

Sixth Unit Under National Mission

This project is the sixth semiconductor unit approved under the India Semiconductor Mission. Five other units are currently in various stages of construction. According to the government, one of those units is expected to begin production later this year.

Previous Developments

Foxconn had previously partnered with Vedanta in 2022 for a semiconductor and display fabrication unit in Gujarat, with a proposed investment of $19.5 billion. That joint venture was dissolved in 2023 due to challenges in execution. The current venture with HCL is its next formal entry into India’s chip sector.

Efforts under the semiconductor mission also include participation from educational institutions and startups. Around 270 academic institutions and 70 startups are engaged in chip design and development. Twenty student-developed products have been taped out by SCL Mohali.

Read more: CG Power's OSAT Unit Targets Chip Production by Mid-2026

Supply Chain Expansion

Several global suppliers and equipment manufacturers are expanding their footprint in India in response to the growing semiconductor plans. Companies like Applied Materials, Lam Research, Merck, Linde, Air Liquide, and Inox are either present or preparing to scale operations.

Amidst the surging demand for semiconductors driven by the rapid expansion of laptop, mobile phone, server, medical device, power electronics, defence equipment, and consumer electronics manufacturing in Bharat, this new unit will provide a significant impetus to the Atmanirbhar Bharat vision.

Conclusion

The HCL-Foxconn unit at Jewar adds to the list of semiconductor projects being developed across the country. The approval is part of a broader push to establish semiconductor manufacturing infrastructure in India.

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