NEW DELHI: The government on Wednesday approved an application for a joint venture between HCL and Foxconn to set up a Semiconductor Assembly and Test (OSAT) facility in Uttar Pradesh.
The minister for Electronics and Information Technology Ashwini Vaishnaw said that with this approval, India now has six semiconductor units at advanced stages of construction.
"With this sixth unit, Bharat moves forward in its journey to develop the strategically vital semiconductor industry," said Vaishnaw.
The new plant, to be established near Jewar Airport in the Yamuna Expressway Industrial Development Authority (YEIDA) region, will manufacture display driver chips for a wide range of devices including mobile phones, laptops, automobiles, and PCs.
It is designed for a capacity of 20,000 wafers per month, with an output of up to 36 million chips monthly. The unit is expected to attract an investment of Rs. 3,700 crore.
Vaishnaw emphasized HCL's legacy in hardware development and manufacturing, and Foxconn’s global leadership in electronics production. Together, the companies aim to strengthen India's semiconductor manufacturing ecosystem.
The minister also highlighted the growing presence of global semiconductor partners in India. He said that the leading equipment manufacturers such as Applied Materials and Lam Research have established operations in the country.
Additionally, gas and chemical suppliers like Merck, Linde, Air Liquide, and Inox are preparing to support the industry’s expansion.
India launched a Rs. 76,000 crore incentive scheme in December 2021 to build a robust semiconductor ecosystem. As part of this mission, Tata Electronics, in collaboration with PSMC, is setting up a Rs. 91,000 crore 28 nm semiconductor fabrication facility in Dholera, Gujarat, which will focus on producing power management chips.
Tata Semiconductor Assembly and Test is also investing in an ATMP unit in Morigaon, Assam, to develop advanced packaging technologies with a production capacity of 48 million units per day.
Meanwhile, CG Power, in partnership with Renesas and Stars Microelectronics, is building a Rs. 7,600 crore ATMP unit in Sanand, Gujarat, targeting automotive and industrial applications with a daily capacity of 15 million units.
Additionally, Kaynes Semicon has received approval for an OSAT facility in Sanand, Gujarat, with an investment of Rs. 3,300 crore and a capacity of 60 lakh chips per day, catering to various sectors.