HCL-Foxconn to Set Up ₹3,706 Cr Semiconductor Plant in Jewar, UP | 2,000 Jobs by 2027

The Union Cabinet has given the green light to a joint venture between HCL and Foxconn to establish a semiconductor assembly and packaging facility in Jewar, Uttar Pradesh. This marks the sixth semiconductor project approved under the government’s ₹76,000 crore India Semiconductor Mission.

The upcoming plant will involve an investment of ₹3,706 crore, with the government contributing around ₹1,500 crore as part of its incentive scheme. The facility will produce display driver chips used in smartphones, laptops, automotive systems, PCs, and other electronic devices with display screens.

Key Highlights:

Location: Yamuna Expressway Industrial Development Authority (YEIDA), near Jewar Airport, Uttar Pradesh

Capacity: 20,000 wafers/month, 36 million chip units/month

Jobs Created: Approximately 2,000

Operational Start: Targeted for 2027

Output: Expected to meet 40% of India’s domestic chip demand

This project marks Foxconn's second attempt to join India’s semiconductor ecosystem. Its previous partnership with Vedanta in 2022 fell through in 2023 due to the inability to secure a viable technology partner and Vedanta’s financial constraints.

India’s Semiconductor Growth Trajectory

This will be the first semiconductor plant in Uttar Pradesh, complementing four other projects in Gujarat and one in Assam. Union IT Minister Ashwini Vaishnaw announced that the new plant will begin production in 2027 and will cater to both domestic and global markets, with Foxconn also utilizing the output for its international operations.

The approval underscores India’s increasing momentum in chip manufacturing. Under the first phase of the India Semiconductor Mission, the country has attracted $18 billion in investments, including:

Tata-PSMC fab ($11 billion)

Micron Technology's assembly and testing plant

CG Power-Renesas JV

Kaynes Semicon

Tata’s own chip initiatives

Many of these projects are already under construction, with the first ‘Made-in-India’ semiconductor chip expected to be released by the end of 2025.

Looking ahead, the government has also drafted a $15 billion second-phase blueprint to support raw materials and essential gases required for semiconductor manufacturing, building on the $10 billion allocated in Phase 1 launched in December 2021.

This latest HCL-Foxconn approval signals India’s serious commitment to becoming a global semiconductor hub and reducing dependency on imports for critical technologies.