Semiconductor – PM Modi to Launch HCL-Foxconn Chip Plant in Jewar
Semiconductor – Prime Minister Narendra Modi will virtually inaugurate the foundation stone ceremony of a major semiconductor manufacturing unit in Uttar Pradesh on Saturday. The project, valued at Rs 3,700 crore, is being developed by India Chip Pvt. Ltd., a joint venture between HCL Group and Taiwanese electronics manufacturer Foxconn. The facility will come up in the Yamuna Expressway Industrial Development Authority (YEIDA) region near the upcoming Noida International Airport in Jewar.
A Strategic Step Toward Chip Manufacturing Growth
The proposed plant marks an important development in India’s efforts to expand its domestic semiconductor manufacturing capabilities. The unit will function as an Outsourced Semiconductor Assembly and Test (OSAT) facility and will be established under the Modified Scheme for Semiconductor Assembly, Testing, Marking and Packaging (ATMP).
The project is seen as part of a broader push to position India as a competitive and reliable destination for global electronics production. By encouraging partnerships between Indian firms and international technology leaders, the government aims to reduce dependency on imported semiconductor components and strengthen supply chain resilience.
Investment Details and Stake Distribution
The joint venture reflects a significant financial commitment from both partners. Foxconn holds a 40 percent stake in India Chip Pvt. Ltd. and has already invested approximately $37.2 million, equivalent to around Rs 312 crore. The Taiwanese manufacturer is expected to raise its total contribution to nearly Rs 424 crore over time.
HCL Group, one of India’s leading technology conglomerates, is collaborating closely with Foxconn to operationalize the project. The combined investment of over Rs 3,700 crore underscores the scale of the initiative and its long-term industrial importance.
Location and Infrastructure Advantage
The semiconductor facility will be built on nearly 48 acres of land allotted by YEIDA in Sector 28, Jewar. Its proximity to the upcoming Noida International Airport is considered strategically important, as it will enhance logistics efficiency and support faster movement of high-value electronic components.
Officials believe the region’s growing infrastructure network, including expressways and industrial corridors, will help create an integrated manufacturing hub in western Uttar Pradesh. The development is also expected to attract related industries and suppliers to the area.
Focus on Display Driver Chips
The upcoming plant will concentrate on assembling and testing display driver integrated circuits. These chips are widely used in devices such as smartphones, laptops, tablets, and automotive systems. With demand for consumer electronics and connected vehicles steadily rising, the facility is expected to cater to both domestic and international markets.
Industry observers note that strengthening capabilities in chip assembly and testing can help India play a larger role in the global semiconductor value chain, even as it gradually expands into advanced chip fabrication.
Employment and Skill Development Prospects
Beyond its industrial significance, the project is expected to generate substantial employment opportunities. Thousands of direct and indirect jobs may be created for engineers, technicians, and skilled workers. The presence of a high-technology manufacturing unit is also likely to encourage training programs and knowledge transfer in semiconductor design and packaging.
Ancillary industries, including logistics providers and component suppliers, are anticipated to benefit as well. This ripple effect could further boost economic activity in the surrounding region.
Strengthening India’s Semiconductor Ecosystem
The collaboration between HCL Group and Foxconn highlights India’s growing relevance in the global semiconductor landscape. By combining domestic expertise with international manufacturing experience, the joint venture represents a measured step toward building a self-reliant electronics ecosystem.
As India continues to invest in semiconductor infrastructure, projects such as this are expected to reinforce long-term ambitions of technological advancement and industrial competitiveness. The Jewar facility, once operational, could serve as a key contributor to the country’s expanding electronics manufacturing footprint.