New Delhi: In a significant boost to India’s ambitions of becoming a global semiconductor hub, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹3,706 crore semiconductor manufacturing facility near Jewar Airport in Uttar Pradesh. The project, a joint venture between Indian technology major HCL and Taiwanese electronics giant Foxconn, marks the sixth semiconductor unit under the India Semiconductor Mission (ISM).
A Strategic Partnership for India’s Tech Future
Announced by Union Minister for Electronics and Information Technology Ashwini Vaishnaw on May 14, 2025, the HCL-Foxconn plant will be located in the Yamuna Expressway Industrial Development Authority (YEIDA) region, close to the upcoming Noida International Airport in Jewar. The facility will specialize in producing display driver chips, critical components for mobile phones, laptops, automobiles, and other smart devices. With a planned capacity of 20,000 wafers and 36 million chips per month, the plant is expected to meet 40% of India’s domestic demand for such chips while also supporting Foxconn’s global supply chain.
“This is a super-advanced unit that will strengthen India’s position in the global semiconductor industry,” said Minister Vaishnaw during a media briefing. He highlighted that the plant’s establishment could pave the way for a display panel manufacturing facility in India, further enhancing the country’s electronics ecosystem.
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Economic and Employment Impact
The HCL-Foxconn joint venture is projected to create approximately 2,000 jobs, contributing to the growth of the electronics manufacturing sector, which currently employs around 25 lakh people in India. The ₹3,706 crore investment underscores India’s proactive approach to attracting both domestic and international players to its nascent semiconductor industry. Commercial production at the Jewar facility is slated to begin in 2027, aligning with the rapid progress of five other ISM-approved semiconductor projects, one of which is expected to start production later this year.
India’s Semiconductor Mission Gains Momentum
The approval of the Jewar plant comes as part of the ₹76,000 crore India Semiconductor Mission, launched to foster a self-reliant semiconductor ecosystem. Five other projects, including a chip fabrication unit by Tata Electronics in Dholera, Gujarat, are already underway. The HCL-Foxconn venture is notable as Foxconn’s second attempt to enter India’s semiconductor space after a previous joint venture with Vedanta fell apart in 2023 due to the lack of a technology partner. This time, Foxconn’s partnership with HCL, which brings decades of hardware development expertise, is seen as a strategic fit.
Foxconn, a key supplier to Apple and a global leader in electronics manufacturing, holds a 40% stake in the joint venture, with HCL leading the collaboration. The project has also received support from the Uttar Pradesh government, which recently allocated 48 acres in Noida Sector 28 for the initiative.
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A Step Toward Self-Reliance
The semiconductor industry is critical to modern technology, powering everything from smartphones to electric vehicles. India’s push to develop domestic manufacturing capabilities is driven by the need to reduce reliance on imports and secure a foothold in the global supply chain. The HCL-Foxconn plant is expected to have a multiplier effect on the electronics manufacturing landscape, fostering innovation and attracting further investment.
As India celebrates this milestone, the Jewar facility stands as a testament to the country’s growing technological prowess and its vision of a self-reliant future. With production set to commence in 2027, the HCL-Foxconn partnership is poised to play a pivotal role in shaping India’s semiconductor journey.