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Union Minister Ashwini Vaishnaw briefing the media in New Delhi on Wednesday
| Photo Credit:
SUSHIL KUMAR VERMA
The Union Cabinet has approved a joint venture between HCL and Foxconn to set up a ₹3,076-crore semiconductor manufacturing facility near Jewar airport in Uttar Pradesh.
This is the sixth project approved under the ₹76,000-crore India Semiconductor Mission. The proposed facility will manufacture display driver chips for a wide range of devices, including mobile phones, laptops, personal computers (PCs), automobiles, and other display-enabled technologies. It is designed to process 20,000 wafers per month, with an estimated monthly output of 36 million units.
Transformative
Minister of Information Technology Ashwini Vaishnaw emphasised the transformative potential of this unit, stating it is expected to attract substantial display panel manufacturing to India. The plant’s output of display driver chips — crucial components for controlling screens in mobile phones, laptops, automobiles, and PCs — is projected to meet 40 per cent of India’s domestic demand. Furthermore, it will cater to Foxconn’s global requirements, positioning India as a key player in the display ecosystem.
“What we understand is that once this unit is there, then the display panel plant will also come to India. This will meet 40 per cent of India’s capacity. It is a large plant. It will also meet the requirements of Foxconn for the rest of the world,” Vaishnaw said.
The strategic location near the upcoming Jewar airport in YEIDA underscores the government’s vision for an integrated electronics manufacturing hub. With a designed capacity of 20,000 wafers per month and an output of 36 million units monthly, the unit, leveraging the expertise of HCL in hardware and Foxconn’s in global electronics manufacturing, is poised to significantly reduce India’s reliance on imports for these vital components.
Project pipeline
In addition to the unit in Jewar, which is the sixth in a series, five semiconductor units are already in advanced stages of construction. In June 2023, the Cabinet had approved the first proposal by Micron for setting up a semiconductor unit in Sanand. Then in March last year, the Cabinet approved three more units:
Of Tata Electronics (TEPL) for a semiconductor fab in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC) of Taiwan in Dholera, Gujarat;
Of Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) for yet another semiconductor unit in Morigaon, Assam; and Of CG Power, in partnership with Renesas Electronics Corporation, Japan and Stars Microelectronics, Thailand, in Sanand.
Gujarat-based Suchi Semicon was approved for setting up a ₹870-crore OSAT facility in Surat. There is also the proposal of Kaynes Technology India Ltd (KTIL) for setting up an Outsourced Semiconductor Assembly and Test (OSAT) facility at Sanand, at an investment of ₹3,307 crore.
Published on May 14, 2025
This article first appeared on The Hindu Business Line
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