Cabinet Approves New Semiconductor Unit Under India Semiconductor Mission

The Union Cabinet, led by Prime Minister Narendra Modi, has approved the establishment of a new semiconductor manufacturing unit under the India Semiconductor Mission. This marks the sixth such facility in the country, with five other units already in advanced stages of construction. The latest approval represents another strategic step in India's development of domestic semiconductor capabilities.

The new unit will be established as a joint venture between HCL and Foxconn, with the facility located near Jewar Airport in the Yamuna Expressway Industrial Development Authority (YEIDA) area. HCL brings its experience in hardware development and manufacturing, while Foxconn contributes its global expertise in electronics production. The plant will specialize in manufacturing display driver chips used in mobile phones, laptops, automobiles, personal computers, and various other display-equipped devices. With a planned capacity of 20,000 wafers per month, the facility is expected to produce approximately 36 million units monthly. The project involves an investment of ₹3,700 crore.

India's Semiconductor Ecosystem Development

India's semiconductor ecosystem continues to expand across multiple fronts. Academic institutions and startups are actively contributing to the sector's growth, with 270 educational establishments and 70 startups currently working on advanced chip design technologies. The Semiconductor Laboratory (SCL) in Mohali has already taped out 20 products developed by students from these institutions. Global semiconductor equipment manufacturers and material suppliers, including Applied Materials, Lam Research, Merck, Linde, Air Liquide, and Inox, have established operations in India to support the growing industry.

The approval comes at a time of increasing domestic demand for semiconductors, driven by India's expanding manufacturing base for mobile phones, laptops, servers, medical devices, power electronics, defence equipment, and consumer electronics. This new facility aligns with the government's vision of achieving self-reliance in critical technology sectors through the Atmanirbhar Bharat initiative. The development strengthens India's position in the global semiconductor value chain while reducing dependence on imports for these essential components.

"The Cabinet’s approval of the HCL–Foxconn OSAT joint venture marks a strategic milestone in India’s semiconductor journey,  With an investment of ₹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.
This isn't just about building infrastructure—it reflects India’s growing maturity in semiconductor manufacturing, with trusted partners, strategic intent, and industrial scale.” Commented Ashok Chandak, President of 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 operations—truly aligning with the vision of ‘Make in India, Make for the World with great support from centre and states and This project can become a landmark as it can create major value addition in India’s electronics manufacturing for Mobiles, Laptops, Consumer, Automotive, etc." Chandak added.

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