Cabinet Approves Rs 3,706 Cr HCL-Foxconn Chip Plant in Jewar

In a significant push towards self-reliance in semiconductor manufacturing, the Union Cabinet has approved a ₹3,706 crore joint venture (JV) between HCL and Foxconn to establish a semiconductor assembly and packaging plant in Jewar, Uttar Pradesh. This marks the sixth semiconductor project under India’s ₹76,000 crore Semiconductor Mission, and the first of its kind in UP. Scheduled to begin production in 2027, the facility is expected to create 2,000 jobs and contribute to meeting nearly 40% of India’s local chip demand.

Why in News?

The Union Cabinet recently approved a new semiconductor plant under the India Semiconductor Mission. This is a JV between HCL and Foxconn, focused on chip assembly and packaging. The plant will be set up in Jewar, Uttar Pradesh, and is expected to start operations by 2027. It will significantly boost local production, employment, and strengthen India’s chip supply chain.

Objectives and Aims

• Establish a semiconductor assembly and testing unit under the India Semiconductor Mission.
• Reduce reliance on imported chips by meeting 40% of domestic demand.
• Promote self-reliance (Aatmanirbhar Bharat) in electronics and semiconductor sectors.
• Create employment opportunities and develop industrial infrastructure in UP.

Major Highlights

• Investment: ₹3,706 crore total, ₹1,500 crore from Government incentives.
• Plant Type: Assembly and packaging of display driver chips for devices like phones, laptops, cars, and PCs.
• Capacity: 20,000 wafers/month; 36 million units/month output.
• Location: Near Jewar Airport, Yamuna Expressway Industrial Development Authority, Uttar Pradesh.
• Jobs Expected: 2,000 direct jobs.
• Production Start: 2027.

Background & Context

• Foxconn’s Second Attempt: Earlier JV with Vedanta collapsed in 2023 due to lack of a viable tech partner.
• The plant is a key part of the India Semiconductor Mission, launched in 2021 with an initial outlay of $10 billion (₹76,000 crore).
• India has already attracted $18 billion worth of investment in this space, with multiple facilities being developed by Tata-PSMC, Micron, Kaynes, and CG Power-Renesas.
• The first made-in-India chips are expected to roll out later in 2025.

Significance

• Boosts India’s semiconductor ecosystem and reduces dependence on foreign chips.
• Supports Make in India and Digital India goals.
• Generates local employment and develops UP as a manufacturing hub.
• Contributes to economic development and strengthens strategic autonomy in critical electronics.