In a significant step towards boosting India’s semiconductor manufacturing capabilities, the Union Cabinet on May 14, 2025, approved a ₹3,706 crore joint venture between HCL and Foxconn to establish the HCL-Foxconn Semiconductor Plant in Jewar, Uttar Pradesh. The proposed unit will specialize in the production of display driver chips, which are critical components used in mobile phones, laptops, automobiles, and a variety of other electronic devices.
The announcement was made by Union Minister of Information and Broadcasting, Ashwini Vaishnaw, during a media briefing held at the National Media Centre in New Delhi. The minister emphasized that this plant will become the sixth semiconductor unit under construction in the country, reflecting the government’s commitment to developing a self-reliant and robust semiconductor ecosystem. “This is another important milestone as India moves forward in its journey to develop a strategically vital semiconductor industry,” he said.
Production Capacity and Employment Potential
The upcoming HCL-Foxconn Semiconductor Plant at Jewar is expected to process 20,000 semiconductor wafers per month. This capacity will significantly bolster the domestic supply chain for essential electronic components. The plant is also projected to create approximately 2,000 jobs, contributing to both regional employment and the national objective of fostering high-tech manufacturing.
This move comes as part of a broader push by the Indian government to attract investment and expand infrastructure in the semiconductor sector. With five semiconductor units already in advanced stages of development, the Jewar facility will further position India as an emerging global hub for chip production.
The government also highlighted how this expansion aligns with its broader industrial policy. According to the official statement, “Semiconductor industry is now shaping up across the country. World-class design facilities have come up in many states, and state governments are actively supporting design firms.”
India’s Semiconductor Ecosystem Grows Stronger
India’s semiconductor landscape is evolving rapidly, with increasing participation from global and domestic players. Major equipment manufacturers such as Applied Materials and Lam Research have already established operations in India. Furthermore, key suppliers of gases and chemicals—including Merck, Linde, Air Liquide, and Inox—are scaling up to meet the demands of this growing industry.
The Cabinet’s latest decision signals growing confidence in India’s ability to become a major player in semiconductor design and production. The HCL-Foxconn Semiconductor Plant is expected to play a pivotal role in reducing reliance on imported chips and strengthening India’s electronics manufacturing supply chain.
As global demand for semiconductors continues to surge, the HCL-Foxconn Semiconductor Plant stands as a crucial step in the collaboration to secure India’s place in the global tech economy. With this investment, the nation moves closer to achieving technological self-reliance and becoming a key contributor to the international semiconductor market.
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