India clears sixth semiconductor unit as HCL–Foxconn JV to invest Rs 3,700 crore in UP plant

In a major boost to India’s semiconductor and consumer electronics ambitions, the Union Cabinet has approved a new chip manufacturing plant near the upcoming Jewar airport in Uttar Pradesh. The facility, a joint venture between Indian tech major HCL and Taiwanese electronics giant Foxconn, will specifically focus on producing display driver chips, critical components used in devices like smartphones, especially iPhones. The display chips are also key components in the production of laptops, PCs, cars, and smart displays, and all of these will now be produced in Jewar, Uttar Pradesh.

With a planned investment of ₹3,706 crore, the plant marks the sixth project approved under the India Semiconductor Mission and is designed for a monthly capacity of 20,000 wafers and 36 million chips. These chips are essential for rendering visuals on screens, from smartphones and tablets to infotainment systems in automobiles.

Foxconn, a key supplier to Apple and a global leader in electronics manufacturing, brings deep expertise in the semiconductor space. Its partnership with HCL signals growing global confidence in India’s semiconductor roadmap and underlines the country’s potential to play a bigger role in the global display tech supply chain.

As demand for high-resolution displays in mobile phones, laptops, automotive dashboards, and consumer electronics continues to surge, this plant will cater to both domestic manufacturing needs and potentially global supply chains.

The project is expected to generate 2,000 jobs and will be located in the Yamuna Expressway Industrial Development Authority (YEIDA) region, a key industrial corridor near Delhi-NCR. It also reflects Prime Minister Narendra Modi’s push for Atmanirbhar Bharat by strengthening India’s foothold in the high-value chipmaking ecosystem.

Beyond manufacturing, India’s semiconductor momentum includes design and research. Over 270 academic institutions and 70 startups are working on next-gen chip designs, with global players like Applied Materials, Lam Research, and Merck already establishing a presence in India to support this growing ecosystem.

The approval of the Foxconn–HCL plant comes at a time when Apple and other global tech giants are increasingly looking at India as both a manufacturing hub and a strategic market.