HCL Foxconn OSAT Semiconductor Facility to Boost Chip Manufacturing in Uttar Pradesh

New Delhi/Jewar

In a strategic boost to India’s semiconductor manufacturing sector, the Union Cabinet chaired by Prime Minister Narendra Modi has approved a ₹3,700 crore joint venture between HCL Technologies and Foxconn (Hon Hai Technology Group) to establish a state-of-the-art OSAT (Outsourced Semiconductor Assembly and Test) facility in Uttar Pradesh. This milestone project is the sixth unit sanctioned under the India Semiconductor Mission, and the first semiconductor unit in Uttar Pradesh.

The semiconductor plant near Jewar Airport, located in the YEIDA (Yamuna Expressway Industrial Development Authority) region, will manufacture display driver chips for mobile phones, laptops, automotive electronics, and consumer devices. With a planned production capacity of 20,000 wafers per month and a design output of 36 million units per month, this OSAT unit is expected to significantly enhance India’s electronics manufacturing capabilities.

Following the announcement V Lee, Foxconn Representative - India stated in his social media post "Hon Hai Technology Group (Foxconn) welcomes the approval granted by the Government of India for its joint venture OSAT (Outsourced Semiconductor Assembly and Test) with HCL Group, to be established near the upcoming international airport in Jewar, Uttar Pradesh." He mentioned "This landmark decision represents a strong vote of confidence in Foxconn’s long-term commitment to India’s semiconductor and electronics manufacturing ecosystem. This OSAT venture reflects our strong belief in local partnerships, innovation, and India’s potential to emerge as a major hub for advanced semiconductor packaging and testing." "As we enter the execution phase, Foxconn remains focused on building local capabilities, nurturing talent, and delivering world-class manufacturing outcomes in India." Lee added

India’s Semiconductor Ecosystem Expands

The HCL-Foxconn partnership leverages HCL’s longstanding hardware expertise and Foxconn’s global leadership in electronics and semiconductor assembly services. According to Roshni Nadar Malhotra, Chairperson of HCL Group, the facility will “meet the growing demand for advanced technology and semiconductor solutions,” and strengthen India’s chip design and semiconductor packaging ecosystem.

This facility will create over 3,500 jobs in semiconductor manufacturing and is a key step toward building India as a semiconductor hub. The location’s proximity to Jewar International Airport adds strategic logistical value, further enhancing Uttar Pradesh’s appeal for foreign direct investment (FDI) in electronics and semiconductors.

Supporting Atmanirbhar Bharat in Semiconductors

This OSAT plant aligns with the Make in India and Digital India initiatives, helping reduce reliance on imports and strengthening the supply chain for critical sectors including automotive semiconductors, consumer electronics, and defense electronics. The announcement marks Foxconn’s renewed semiconductor push in India.

India’s semiconductor roadmap is also supported by over 270 academic institutions and 70 startups, actively engaged in product development and innovation. 20 chip designs from Indian students have already been taped out at Semi-Conductor Laboratory (SCL) Mohali, a sign of growing domestic semiconductor design capability.

Global Semiconductor Supply Chain Integration

With equipment majors like Applied Materials, Lam Research, and chemical suppliers including Merck, Linde, and Air Liquide already operational in India, the country is rapidly becoming part of the global semiconductor supply chain. The facility will cater to rising demand across sectors like mobile phone manufacturing, electric vehicles, data centers, and medical electronics.