Cabinet clears ₹3,706 cr HCL-Foxconn chip assembly unit at Jewar

Business Standard

14-05-2025

The Union Cabinet on Wednesday approved the ₹3,706 crore HCL Group–Foxconn joint venture chip assembly unit at Jewar in Uttar Pradesh, Union Electronics and Information Technology Minister Ashwini Vaishnaw said.
The outsourced assembly and testing (OSAT) unit, which is expected to employ 2,000 people, will assemble up to 20,000 wafers per month with a design output capacity of 36 million units per month, he said.
'This plant will manufacture display driver chips for mobile phones, laptops, personal computers, automobiles and other electronic devices that require a display unit. This was a requirement for India, as electronic manufacturing in the country has increased multifold in recent years. The display driver chip is one of the key components in the ecosystem,' Vaishnaw said, adding that the plant will use wafer-level technology to assemble chips.
This is the sixth project approved by the Centre under the India Semiconductor Mission. The ₹76,000 crore ISM incentive plan, which aims to kick-start semiconductor chip manufacturing and packaging in the country, has tasted success, with six applications approved so far.
Five of these ISM-approved projects are chip packaging units, while Tata Electronics is the sole chip fabrication unit to date. The Tata Group's Dholera semiconductor unit is the first and only chip fabrication facility in India, which was approved by the central government on February 29, 2024, under the ambitious India Semiconductor Mission (ISM).
The plant is expected to begin operations by 2027 and may employ close to 2,000 people overall. The chip fabrication unit in Dholera is coming up at a cost of more than ₹91,000 crore.
'With an investment of ₹3,700 crore, the project brings large-scale advanced packaging and testing capabilities specifically for display driver ICs—addressing a critical gap in India's display and electronics value chain,' said Ashok Chandak, president of the semiconductor policy advisory bodies, India Electronics and Semiconductor Association and SEMI India.