Modi lays foundation for HCL-Foxconn semiconductor plant, pushing ‘Made in India chip’ for self-reliance

Prime Minister Narendra Modi on Saturday called for building a robust semiconductor ecosystem in the country and pushed for India’s “atmanirbharta” (self-reliance) in chip manufacturing.

He was speaking after laying the foundation stone for Uttar Pradesh’s most significant semiconductor unit — a joint venture between Taiwan’s electronics manufacturing services company Foxconn and India’s HCL Group.

Foxconn and HCL Group have formed a joint venture, called India Chip Private Limited, to set up an Outsourced Semiconductor Assembly and Test (OSAT) facility at YEIDA (Yamuna Expressway Industrial Development Authority) in Greater Noida. The advanced OSAT facility is expected to be operational by 2028.

India Chip is a 60:40 joint venture between the HCL Group and Taiwanese Foxconn. The facility is being set up with an investment of Rs 3,700 crore, the companies said in a statement. This would make India Chip among a handful of home-grown companies to commence display driver chip production domestically. The facility is expected to create over 3,500 direct and indirect jobs, build local supply chains, and attract ecosystem partners across the semiconductor value chain.

With a planned capacity to process 20,000 wafers per month, the facility will play a pivotal role in meeting India’s growing domestic demand for semiconductors, the statement said.

“India is surging ahead to build a robust semiconductor ecosystem. If the 20th century was all about nations with the highest oil reserves, the 21st century is ruled by countries having the prowess in chip-making. We are proud that Uttar Pradesh is emerging as a major player in the technology sector. This semiconductor unit will give new recognition to the state. Moreover, it will boost employment, as the establishment of a semiconductor facility attracts ancillary industries, which will ultimately generate more jobs,” Modi said in a virtual message.

Young Liu, Chairman of Hon Hai Technology Group (Foxconn), said the project is a great example of how we build, operate and localise in India. “We are sincerely thankful to our cherished partner HCL and privileged to be recognised by the Government of India and Government of Uttar Pradesh for achieving this milestone,” he said.

Roshni Nadar Malhotra, chairperson of HCL Group, said the project marks a significant new chapter in the HCL Group’s growth story and builds on its strong engineering legacy, which has long contributed to India’s technology and manufacturing ecosystem.

India started its semiconductor journey in 2021 with the allocation of Rs 76,000 crore as an incentive to companies investing in the country. Union Finance Minister Nirmala Sitharaman, in her budget speech, announced the launch of the second edition of India Semiconductor Mission to develop the semiconductor ecosystem.

Under India Semiconductor Mission (ISM), the government has so far approved 10 major semiconductor manufacturing projects representing a cumulative investment of approximately Rs 1.60 lakh crore across six states.

Modi said four semiconductor units, out of the 10 approved under ISM, are set to begin production in the country.

Union Electronics and Information Technology Minister Ashwini Vaishnaw said in the last 11 years, the prime minister has established India as a powerhouse in the field of electronics. He said, earlier the electronics manufacturing was very minimal in the country, but at present, the country is witnessing electronics manufacturing worth Rs 12 lakh crore.

He said electronics is the third largest export item of the country, and Uttar Pradesh is a major contributor to it.