Daijiworld Media Network - New Delhi
New Delhi, May 14: The Union Cabinet on Wednesday approved the establishment of a new semiconductor packaging and testing unit by HCL and Foxconn in Uttar Pradesh, marking a pivotal advancement in India's efforts to build a robust domestic chip manufacturing ecosystem.
Chaired by Prime Minister Narendra Modi, the Cabinet cleared the Rs 3,700 crore project under the India Semiconductor Mission (ISM). The unit will be set up near Jewar airport, a key strategic location that aligns with the government’s industrial corridor vision.
Industry leaders welcomed the decision, describing it as a reflection of India’s maturing semiconductor strategy. The plant will address a critical gap by focusing on advanced packaging and testing capabilities for display driver ICs, which are essential for devices like mobile phones, laptops, automotive displays, and PCs.
Ashok Chandak, President of IESA and SEMI India, said: “This project fills a key gap in India’s electronics value chain. It enables the country to add significant value in downstream semiconductor operations and strengthens our global positioning in OSAT (Outsourced Semiconductor Assembly and Test).”
The plant is designed to process 20,000 wafers per month, with an expected output of 36 million chips monthly. These chips will serve a broad range of sectors, from consumer electronics to automotive applications.
Foxconn, one of the world’s top electronics manufacturers, will contribute its global chip packaging and testing expertise. HCL Group, known for its technological and engineering capabilities, brings in local execution strength and talent access.
The collaboration is expected to make India a preferred destination for semiconductor OSAT operations, in line with the ‘Make in India’ and ‘Make for the World’ initiatives.
The Cabinet noted that five semiconductor units are already in advanced construction stages, and the approval of this sixth unit represents a strategic leap in India's semiconductor journey.
Industry experts see the project as a landmark move with the potential to significantly enhance domestic electronics manufacturing and reduce dependency on imports.