The Union Cabinet has approved a ₹3,706 crore investment proposal by the HCL Group and Foxconn for setting up a semiconductor chip assembly and testing unit in Jewar, Uttar Pradesh. This marks another milestone in India’s growing ambition to establish itself as a global hub for semiconductor manufacturing.
New OSAT Facility to Boost Domestic Electronics Manufacturing
The approved facility is an outsourced semiconductor assembly and testing (OSAT) plant, expected to create around 2,000 jobs. Once operational, it will assemble up to 20,000 wafers per month and deliver a design output capacity of 36 million units monthly. These chips will be used in a wide range of devices including smartphones, laptops, PCs, vehicles, and other electronics that require display units.
Union Electronics and Information Technology Minister Ashwini Vaishnaw highlighted that the plant will produce display driver chips — a critical component in the electronics ecosystem — using advanced wafer-level packaging technology.
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Part of India’s Broader Semiconductor Push
This project is the sixth to be approved under the government’s ₹76,000 crore India Semiconductor Mission (ISM), an incentive scheme aimed at catalysing semiconductor and chip packaging manufacturing across the country.
So far, five OSAT projects have been approved under ISM, with Tata Electronics’ Dholera unit remaining the only chip fabrication facility sanctioned to date. The Tata unit, located in Gujarat, involves an investment of over ₹91,000 crore and is expected to anchor India’s chip-making capabilities.
Expected Timeline and Impact
The HCL-Foxconn facility in Jewar is anticipated to begin operations by 2027. In addition to employment generation, the project is expected to further localise India’s electronics manufacturing supply chain and reduce reliance on imported chips. With electronic manufacturing in India expanding rapidly, this development strengthens the country’s strategic positioning in the global semiconductor value chain.
