The Union Cabinet has approved a joint venture between HCL and Foxconn to set up a chip assembly and packaging unit in the state of Uttar Pradesh. The plant will manufacture display driver chips for mobile phones, automobiles, PCs, laptops, and other electronic electronics, including a display. The capacity of the facility will be designed for production of 20,000 wafers per month and an output capacity of 36 million units each month.

This will be the sixth project to receive approval under the government’s ambitious ₹76,000 crore India Semiconductor Mission. The plant is said to attract an investment of ₹3,706 crore, with ₹1,500 crore coming from the Government’s kitty as part of incentives under the cheap manufacturing scheme.

Plant in Uttar Pradesh

The new chip assembly and packaging plant is set up near Jawar airport at the Yamuna Expressway Industrial Development Authority in Uttar Pradesh. This is the first ship plant in the state that has come up under the Centre’s semiconductor mission. Other plants, including a fab and three assembly units, are also being developed in the state of Gujarat. Another assembly and packaging plant is underway in Assam.

The Union IT Minister Ashwini Vaishnav said that the plant will start producing chips by 2027 and will be able to meet around 40% of India’s local demand for semiconductor chips. The rest of the produce will be used by Foxconn for its foreign manufacturing facilities. This is the company’s second attempt at making a foray into India’s local ship production.