NEW DELHI: Prime Minister Narendra Modi on Saturday laid the foundation stone for Uttar Pradesh’s most significant semiconductor unit - a joint venture between Taiwan’s electronics manufacturing services company Foxconn and India’s HCL Group.
Foxconn and HCL Group have formed a joint venture, called India Chip Private Limited, to set up an Outsourced Semiconductor Assembly & Test (OSAT) facility at YEIDA (Yamuna Expressway Industrial Development Authority) in Greater Noida. The advanced OSAT facility is expected to be operational by 2028.
“We are proud that Uttar Pradesh is becoming a part of the semiconductor ecosystem in the country. This semiconductor unit will give new recognition to the state. Moreover, it will boost employment, as the establishment of a semiconductor facility attracts ancillary industries, which will ultimately generate more jobs,” said Narendra Modi.
Chip Private Limited has earmarked an investment of ₹3,700 crore over the next few years in the state-of-the-art facility, which will produce display driver chips. The investment is expected to create over 3,500 direct and indirect jobs, build local supply chains, and attract ecosystem partners across the semiconductor value chain.
With a planned capacity to process 20,000 wafers per month, the facility will play a pivotal role in meeting India’s growing domestic demand for semiconductors.
Young Liu, Chairman of Hon Hai Technology Group (Foxconn), said that this JV is a great example of how we build, operate and localize in India. “We are sincerely thankful to our cherished partner HCL and privileged to be recognized by the Government of India and the Government of Uttar Pradesh for achieving this milestone,” said Liu.
Roshni Nadar Malhotra, Chairperson of HCL Group, said that the project marks a significant new chapter in the HCL Group’s growth story and builds on its strong engineering legacy, which has long contributed to India’s technology and manufacturing ecosystem.
“We look forward to working closely with Foxconn, to bring this state-of-the-art project to life at the earliest, and to further strengthen India’s technology story,” said Nadar.
India started its semiconductor journey in 2021 December, with allocation of 76000 crore as an incentive to the companies investing in India. Finance minister Nirmala Sitharaman, in her budget speech on 1 February, announced the launch of the second edition of India Semiconductor Mission to develop the semiconductor ecosystem.
Under the India Semiconductor Mission (ISM), the government has so far approved 10 major semiconductor manufacturing projects representing a cumulative investment of approximately ₹1.60 lakh crore across six states.
The Prime Minister also mentioned that four semiconductor units, out of the ten approved under the India Semiconductor Mission, are set to begin production in the country.
The largest investment comes from Tata Electronics in partnership with PSMC, which is setting up a fabrication plant in Dholera, Gujarat, with an investment of about ₹91,526 crore. In Sanand, Gujarat, Micron Technology is establishing an Assembly, Test, Marking and Packaging (ATMP) facility with an investment of ₹22,516 crore. Tata Electronics is also developing a semiconductor assembly and test unit in Morigaon, Assam, with an investment of ₹27,120 crore.
Other ATMP facilities in Sanand include projects by CG Power and Industrial Solutions in partnership with Renesas and Stars Microelectronics, involving ₹7,584 crore, and Kaynes Technology through Kaynes Semicon with ₹3,307 crore. In Jewar, Uttar Pradesh, a joint venture between HCL Group and Foxconn is investing ₹3,706 crore to establish an OSAT facility.
In Odisha, SiCSem Private Ltd is setting up a compound semiconductor fabrication unit in Bhubaneswar with ₹2,066 crore, while 3D Glass Solutions is investing ₹1,943 crore in advanced packaging. Andhra Pradesh is hosting the Advanced System in Package (ASIP) ATMP project with ₹480 crore, and Continental Device India Limited is expanding its discrete semiconductor facility in Mohali, Punjab, with ₹117 crore.