The Indian government has greenlit a significant semiconductor manufacturing project—a joint venture between HCL-Foxconn to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Jewar, Uttar Pradesh.
With an investment of INR 3,706 crore, this initiative marks the sixth semiconductor unit under the India Semiconductor Mission (ISM) and the first of its kind in Uttar Pradesh.
Strategic Location and Infrastructure
The upcoming OSAT facility will be situated on a 48-acre plot in Sector 28 of the Yamuna Expressway Industrial Development Authority (YEIDA) region, adjacent to the under-construction Noida International Airport in Jewar.
This location offers strategic advantages, including proximity to key infrastructure and existing industrial developments like the Medical Device Park, facilitating smoother logistics and operations.
The plant is designed to produce 36 million display driver chips monthly, essential components for devices such as smartphones, laptops, automobiles, medical equipment, and defense systems.
Additionally, the facility will handle compound semiconductors, silicon photonics, sensor fabs, and discrete semiconductors, positioning it as a comprehensive hub for semiconductor manufacturing and testing.
Economic Impact and Employment Opportunities
The establishment of the HCL-Foxconn semiconductor unit, which is the sixth semiconductor unit, is expected to generate approximately 2,000 direct jobs, with additional indirect employment opportunities arising from ancillary industries and services.
This aligns with the government’s ‘Atmanirbhar Bharat’ initiative, aiming to boost domestic manufacturing capabilities and reduce reliance on imports.
Government Support and Incentives
Recognizing the strategic importance of semiconductor manufacturing, the Uttar Pradesh government has approved a substantial subsidy package of INR 7,037 crore to support the project.
This includes capital and interest subsidies, tax exemptions, and infrastructure support, enhancing the project’s viability and attractiveness for investment. 
The central government’s approval under the ISM further underscores India’s commitment to becoming a global hub for semiconductor production, with this project serving as a cornerstone in that vision.
Leadership Comments
Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, highlighted the project’s significance in expanding India’s semiconductor capabilities and fostering regional development.
Roshni Nadar Malhotra, Chairperson of HCLTech, emphasized the company’s deep-rooted expertise in engineering and semiconductor design, stating, “We have a certain DNA. We understand the ecosystem. We work at technologies with all the top partners.”
Broader Industry Context
The approval of the HCL-Foxconn joint venture comes amid a broader push to establish a robust semiconductor ecosystem in India.
Previous attempts, such as the $19.5 billion Foxconn-Vedanta joint venture, faced challenges due to lack of experience and were eventually dissolved.
However, the current project benefits from HCL’s established engineering prowess and Foxconn’s manufacturing expertise, promising a more grounded and feasible approach to semiconductor manufacturing in the country.
Future Outlook
The HCL-Foxconn OSAT facility is slated to commence commercial production by 2027, contributing significantly to India’s goal of self-reliance in semiconductor manufacturing.
