Cabinet approves HCL-Foxconn joint venture under semiconductor mission

The Union Cabinet on Wednesday approved a semiconductor manufacturing facility by HCL and Foxconn under the India Semiconductor Mission.

“Already five semiconductor units are in advanced stages of construction. With this sixth unit, Bharat moves forward in its journey to develop the strategically vital semiconductor industry,” the government said.

The new plant will be a collaborative project between HCL and Foxconn. The proposed unit will be located near the upcoming Jewar airport, within the Yamuna Expressway Industrial Development Authority (YEIDA) region. The facility will produce display driver chips for mobile phones, laptops, automobiles, PCs, and various other display-equipped devices. It is designed to handle 20,000 wafers every month, with an output capacity of 36 million units per month.

“The new semiconductor unit approved today will attract investment of ₹3,700 crore,” the statement noted.

India’s semiconductor industry

India’s semiconductor landscape is taking shape with rapid momentum. Cutting-edge design infrastructure has been established in several states, with state governments actively encouraging design firms to set up operations.

At the academic and startup level, students and innovators across 270 institutions and 70 startups are developing advanced design technologies aimed at creating next-generation semiconductor products. Notably, 20 of these student-designed products have already been taped out at SCL Mohali, the government said.

Supporting infrastructure is also expanding alongside. Key global players such as Applied Materials and Lam Research — leading equipment manufacturers — have set up operations in India. Chemical and gas suppliers like Merck, Linde, Air Liquide, and Inox are also preparing to scale up to meet the needs of the growing domestic semiconductor sector.

As demand for semiconductors surges — driven by manufacturing growth in areas like mobile phones, laptops, servers, medical equipment, defence systems, and consumer electronics — this upcoming facility is expected to further contribute to “Prime Minister Narendra Modi’s vision of Atmanirbhar Bharat”.