Union Cabinet Approves ₹3,706 Crore HCL-Foxconn Semiconductor Plant in Jewar, Uttar Pradesh

The Union Cabinet has cleared India’s semiconductors with a major power as the Cabinet approves a joint venture between HCL Technologies and Foxconn to set up the semiconductor assembly and packaging plant at Jewar, Uttar Pradesh, worth ₹3,706 crore. This project is one of the initiatives under the India Semiconductor Mission that seeks to foster self-reliance and cut the import reliance on chips. The plant is set to start its operations in 2027 and will be a major contributor to local chip manufacturing and jobs.

Context:

•  The HCL-Foxconn JV was approved by the Cabinet – the sixth semiconductor project under the India Semiconductor Mission and the first facility of its kind in Uttar Pradesh, with products to come out in 2027.

Key Highlights:

• Investment & Incentives:

  • The investment comes to ₹3,706 crore, with ₹1,500 crore coming from government incentives.

• Project Details:

  • Semiconductor assembly and packaging plant with specialisation on display driver chips in phones, laptops, cars and PC.

  • All adding to a production capacity of 20,000 wafers per month, the output per month would be 36 million units.

• Location & Employment:

  • Located in Jewar Airport, under Yamuna Expressway Industrial Development Authority, Uttar Pradesh.

  • To create 2,000 jobs directly, promoting industrialisation in the region.

• Background:

  • Foxconn’s past JV with Vedanta failed in 2023 on account of no viable tech partner.

  • India Semiconductor Mission, which was launched in 2021 with an initial outlay of ₹76,000 crore, aims at developing a robust semiconductor ecosystem.

  • India has already managed to draw 18 billion dollars in semiconductor investments.

• Significance:

  • Encourages the Aatmanirbhar Bharat effort of India by minimizing foreign chip dependency and developing a strategic independence.

  • Aids Make in India and the Digital India endeavor.

  • Places Uttar Pradesh as a rising electronics-making hub.

Conclusion:

 HCL-Foxconn semiconductor facility in Jewar is a showcase project of the India Semiconductor Mission, which will help in boosting up chip-making capabilities of India, create large-scale employment as well as work towards ensuring India’s own technological autonomy. This is the key take on the way to transforming India into a global player in the semiconductor business.