India approves $434 million HCL-Foxconn semiconductor plant

The Indian government has approved a new semiconductor unit — a joint venture between India’s HCL Group and Taiwanese tech giant Foxconn — costing INR 37 billion (about USD 434 million) in the northern Uttar Pradesh state. 

Foxconn, the world’s largest contract electronics maker, reportedly holds a 40% stake in the joint venture. The Taiwanese firm had announced an investment of USD 1.5 billion in November 2023 to expand its operations in India.

The new plant, which will be located near the upcoming Jewar airport in Uttar Pradesh’s Yamuna Expressway Industrial Development Authority (YEIDA) area, will produce display driver chips for mobile phones, laptops, automobiles, PCs and other devices. 

Designed to handle 20,000 wafers every month, it will have an output capacity of 36 million units per month, the government said.

“This will help meet the rising demand in sectors like smartphones, automotive electronics, and consumer devices,” India’s Information and Broadcasting Minister Ashwini Vaishnaw said.

This is the first semiconductor facility to come up in Uttar Pradesh under the central government’s India Semiconductor Mission. Four plants, including a fab and three assembly units, are coming up in Gujarat and one assembly and packaging plant is under construction in Assam.

“As the country moves forward in semiconductor journey, the eco system partners have also established their facilities in India,” the government said. “Applied Materials and Lam Research are two of the largest equipment manufacturers. Both have a presence in India now. Merck, Linde, Air Liquide, Inox, and many other gas and chemical suppliers are gearing up for growth of our semiconductor industry.”