UP Cabinet Clears ₹3,706 Cr HCL-Foxconn Semiconductor Project

The Uttar Pradesh Cabinet has approved a major semiconductor manufacturing project led by Vama Sundri Investment, a subsidiary of HCL Tech, in partnership with Foxconn. This ambitious facility, to be set up along the Yamuna Expressway, involves an investment of ₹3,706 crore and aims to strengthen India’s semiconductor production capabilities.

Key Details of the Semiconductor Projects

Project Approval

• The UP Cabinet has approved projects by Vamasundari (HCL Group) and Tarq Semiconductor (Hiranandani Group), aiming to establish a semiconductor manufacturing hub in Jewar, near the Noida International Airport.

Investment and Location

HCL Group’s Vamasundari Investment

• Investment: ₹3,706 crore.
• Location: Sector 10 near Noida International Airport along the Yamuna Expressway.

Hiranandani Group’s Tarq Semiconductor

• Investment: ₹28,440 crore.
• Location: Sector 28 near the airport along the Yamuna Expressway.

Production Plans

• The HCL Group’s facility will focus on producing small panel driver ICs and display driver integrated circuits (DDIC) with a projected annual output of 240,000 units.

Employment Potential

• Direct Employment: 1,000 jobs.
• Indirect Employment: 10,000 jobs.

Additional employment opportunities estimated at 3,780 positions for the HCL Group’s project.

Joint Venture Details

• Vamasundari Investments (HCL Group) will collaborate with Foxconn Hon Hai Technology India Mega Development for an OSAT (Outsourced Semiconductor Assembly and Test) facility.

Ownership Structure

• Vamasundari Investments (HCL) holds 60% equity, while Foxconn holds 40%.

Land Allotment and Facilities

• The Yamuna Expressway Industrial Development Authority (YEIDA) has issued a ‘letter of intent’ for land allocation to Vamasundari Investments.

Total Land Area: 50 acres.

Infrastructure Requirements

• 9,000 KVA of electricity and 2,000 MLD of water per day (85% water recycling efficiency planned).

Government Subsidies and Support

• Additional Incentives: Further financial incentives will be offered upon commencement of production.
• These state incentives supplement central government support under the India Semiconductor Mission (ISM) scheme.

Timeline and Future Steps

• Tarq Semiconductor’s application under the ISM scheme is pending final approval from the central government.
• Expected Timeline: If approval is received by December, construction may commence by April, with a target to start operations within 18 months after work begins on-site.

Impact on Indian Semiconductor Ecosystem

• The projects are expected to reduce import dependence by bolstering domestic semiconductor manufacturing capabilities.
• Strategic Location: Proximity to Noida International Airport will enhance logistical advantages for exports and imports.
• Boost to Self-Reliance: Supports India’s goal of technological self-reliance in electronics and semiconductor sectors, enhancing India’s position in the global supply chain.