Cabinet Gives Nod To Rs 3,700-Crore Semiconductor Unit Of HCL-Foxconn

The Union Cabinet gave its nod on Wednesday for a Rs 3,700-crore semiconductor unit, which will be developed by HCL Group and Foxconn through a joint venture.

The chip unit, to be set up under the India Semiconductor Mission, will come up near Jewar airport of Uttar Pradesh under the Yamuna Expressway Industrial Development Authority. It is expected to generate employment for around 2,000 people, according to the government.

This plant is set to manufacture display driver chips for mobile phones, laptops, automobiles, PCs and other devices with a display. Five semiconductor units are in advanced stages of construction and this new addition will mark the sixth unit under the mission.

The unit is designed for 20,000 wafers per month for Wafer Level Packaging with an output capacity of 36 million units per month. The investment into the unit is worth Rs 3,706 crore.

This is Foxconn's second attempt to enter chip manufacturing in India. The Taiwanese giant had earlier entered into an agreement with Vedanta, but that quickly ended as Foxconn cited a need to explore more diverse development opportunities.

India Semiconductor Mission, launched in 2022, has six projects that has been approved so far. The construction of units is also going at a fast pace.

Students in 270 academic institutions and 70 startups are learning semiconductor technology through the latest tools.

In the landscape, the companies in the semiconductor ecosystem, such as chemicals, gases and equipment manufacturers, are setting up plants.

Applied Materials and Lam Research are two of the largest equipment manufacturers. Many players like Merck, Linde, Air Liquide, Inox, other gas companies, and chemical suppliers are gearing up for growth in the semiconductor industry.