As the sixth approved project under ISM, HCL and Foxconn’s ₹37.06 billion OSAT unit in Uttar Pradesh is set to fuel India’s semiconductor ambitions, producing 36 million display driver chips monthly by 2027.
A joint venture between Indian tech firm HCL and Taiwan’s Foxconn has received government approval to set up a ₹37.06 billion outsourced semiconductor assembly and test (OSAT) unit in Uttar Pradesh, under the India Semiconductor Mission (ISM).
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi greenlit the project on Wednesday, according to a government press release.
The approved facility will be established near Jewar airport in the Yamuna Expressway Industrial Development Authority (YEIDA) region. It is designed to produce display driver chips used in a wide range of devices, including smartphones, laptops, PCs, and automobiles.
The plant will process 20,000 wafers per month, with a planned output of 36 million chips monthly.
This is the sixth project to be approved under India’s semiconductor push and the first to be set up in Uttar Pradesh. Approximately ₹15 billion of the investment will come through government incentives aimed at bolstering the country’s electronics manufacturing capabilities.
Foxconn, a global electronics manufacturing leader, brings production expertise, while HCL contributes decades of experience in hardware development. The two companies aim to fill a critical gap in India’s electronics supply chain by focusing on advanced chip packaging and testing.
Foxconn’s previous attempt to enter India’s semiconductor sector—via a failed joint venture with Vedanta—was derailed in 2023. According to experts, the new partnership with HCL signals a more grounded and viable move, backed by solid industrial experience and clearer strategic alignment.
Ashok Chandak, President of IESA and SEMI India, noted, “This is not just about building infrastructure—it reflects India’s growing maturity in semiconductor manufacturing, with trusted partners, strategic intent, and industrial scale.”
Chip production is expected to begin by 2027, potentially covering 40 per cent of India’s domestic need for display driver chips.
