HCL and Foxconn join hands for India’s 6th semiconductor unit

In a significant boost to India’s semiconductor ecosystem, the Union Cabinet, chaired by Prime Minister Narendra Modi, has given the green light to the establishment of a sixth semiconductor manufacturing unit under the India Semiconductor Mission. This approval marks another milestone in the nation’s ambitious journey to build a robust and self-reliant semiconductor industry.

The newly approved unit will be set up as a joint venture between HCL and Foxconn, combining HCL’s expertise in hardware manufacturing with Foxconn’s global leadership in electronics production. The plant will be located near Jewar Airport within the Yamuna Expressway Industrial Development Authority (YEIDA) region.

Focused on producing display driver chips, this facility will cater to the growing demand for high-performance components used in smartphones, laptops, automobiles, personal computers, and a wide range of display-driven devices. The plant is expected to have a production capacity of 20,000 wafers per month, with an output of up to 36 million chips monthly.

India’s semiconductor landscape is rapidly evolving, with five fabrication units already under advanced stages of development. The approval of this sixth facility is aligned with the government’s broader vision of strengthening India’s position in global technology supply chains.

Across the country, design innovation hubs have emerged, supported by state governments and the Ministry of Electronics and IT.

More than 270 academic institutions and 70 startups are actively working on cutting-edge chip design technologies. Notably, 20 student-led designs have already been successfully fabricated at SCL Mohali, showcasing India’s rising design capability.

The new unit represents a capital investment of Rs 3,700 crore, reaffirming investor confidence and reinforcing India’s strategic commitment to developing a full-fledged semiconductor manufacturing ecosystem.

"Union Cabinet has approved India's 6th semiconductor unit in Jewar, Uttar Pradesh. Under India Semiconductor Mission, 5 semiconductor units have been approved so far and rapid construction is going on there. Production at one unit will begin this year. In this connection, there is one more super-advanced unit. This is a joint venture of HCL and Foxconn,"informed Union Minister Ashwini Vaishnaw.

Alongside chip makers, key ecosystem players such as Applied Materials and Lam Research have expanded their operations in India. Major global suppliers of semiconductor gases and chemicals—including Merck, Linde, Air Liquide, and Inox—are also scaling up their Indian presence to support the sector’s anticipated growth.

As demand for semiconductors continues to surge due to increased production of laptops, smartphones, servers, medical devices, defense systems, and consumer electronics, this new facility will play a pivotal role in realizing Prime Minister Modi’s vision of an Atmanirbhar Bharat (self-reliant India) in the technology domain.