HCL-Foxconn display chip unit in Uttar Pradesh gets green light

The government has given greenlight to HCL and Foxconn’s joint venture to establish a semiconductor plant near Jewar airport, within the Yamuna Expressway Industrial Development Authority (YEIDA).

The newly approved semiconductor unit will fetch an investment of Rs3,700 crore (about $433 million), a government statement said.

Last year, India proposed a 300-acre site for the Foxconn Industrial Park. Strategically located along the expressway connecting Greater Noida to Agra in Uttar Pradesh, the site comes under YEIDA’s jurisdiction.

Taiwanese iPhone assembler Hon Hai Technology Group—better known as Foxconn—will utilize HCL’s strength in hardware development and manufacturing. The facility is expected to produce 20,000 wafers per month, with an additional design output capacity of 36 million units per month.

“This project will galvanise the semiconductor manufacturing landscape in the state, attract investments, build local capabilities, and trigger the development of a semiconductor value chain in and around the Jewar region,” said Pankaj Mohindroo, chairman of the India Cellular & Electronics Association (ICEA).

The unit will be India’s sixth semiconductor fabrication plant, marking another milestone in the country’s journey towards self-reliance in chip manufacturing.

The plant will focus on manufacturing display driver chips used in a variety of range devices including mobile phones, laptops, automobiles, PCs, and other display-enabled electronics.

India’s semiconductor industry is expanding across various regions, and several states are now home to world-class design facilities. State governments are actively courting design firms to build robust ecosystems.

Students and entrepreneurs from 270 academic institutions and 70 startups are currently working on cutting-edge design technologies to create innovative products, the government said in a statement.

Meanwhile, ecosystem partners have also started establishing a presence in the country.

American semiconductor equipment giants Applied Materials and Lam Research Corporation are already operating in India. Global gas and chemical suppliers such as Merck, Linde, Air Liquide, Inox, and others are preparing to support the industry’s anticipated growth.