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.
| Summary/Static | Details |
| Why in the news? | UP Cabinet Clears ₹3,706 Cr HCL-Foxconn Semiconductor Project and Tarq Semiconductor (Hiranandani Group) |
| Project Approval | UP Cabinet |
| Investing Companies | - Vamasundari Investments (HCL Group) with Foxconn collaboration.
- Tarq Semiconductor (Hiranandani Group).
|
| Investment | - Vamasundari (HCL Group): ₹3,706 crore.
- Tarq Semiconductor: ₹28,440 crore.
|
| Strategic Impact | - Strengthens India’s semiconductor ecosystem.
- Reduces import dependency.
- Boosts UP’s high-tech industry infrastructure.
|
| Chairman or MCD | Foxconn – Young Liu Hiranandani Group – Niranjan Hiranandani HCL – Roshni Nadar Malhotra |