India is significantly advancing its global technology standing, with Uttar Pradesh emerging as a leader in this transformation. The state is preparing for its first semiconductor unit, with construction scheduled to commence in January 2026. This project, a joint venture between HCL and Foxconn, aims to boost India’s semiconductor manufacturing capabilities and reduce import dependency. The facility, located in Noida, will focus on producing critical display driver chips.
This HCL-Foxconn collaboration is a key development for the India Semiconductor Mission (ISM), enhancing domestic capabilities and fostering a robust ecosystem. The initiative is strategically timed to meet the escalating demand for advanced electronics driven by global AI trends, thereby strengthening India’s strategic independence and its position in the global electronics manufacturing supply chain.
$433M
Initial Investment
(~₹3,706 Cr)
20K
Wafers / Month Capacity
(Projected)
Jan 2026
Groundbreaking Expected
15,000+
New Job Opportunities
40%
India’s DDIC Demand Fulfilled
2027
Commercial Production Start
The HCL-Foxconn Alliance: Building India’s Chip Future
The joint venture between HCL and Foxconn (via its subsidiary, Foxconn Hon Hai Technology) has received landmark approval from the Union Cabinet. This marks India’s sixth sanctioned semiconductor fabrication plant and the first in Uttar Pradesh. The facility will be situated in Sector 28 of the Jewar area, within the Gautam Budh Nagar’s Yamuna Expressway Industrial Development Authority (YEIDA) region, close to the upcoming Noida International Airport.
With an investment of approximately ₹3,706 crore (about $433 million), the plant’s primary focus will be the manufacturing of Display Driver Integrated Circuits (DDICs). These chips are essential for controlling pixels in devices.
DDICs are crucial for devices such as:
- Mobile phones
- Laptops
- Automobiles
- PCs
- Smartwatches
- Smart glasses
The facility is projected to achieve a monthly capacity of 20,000 wafers, producing up to 36 million display driver chips per month. Commercial production is expected to begin by 2027, with groundbreaking in January 2026. This venture aims to fulfill approximately 40% of India’s domestic demand for these components, supporting the Atmanirbhar Bharat (self-reliant India) initiative.
Powering the “Make in India” Dream: The India Semiconductor Mission
The HCL-Foxconn unit is a direct result of the India Semiconductor Mission (ISM), launched in 2021 with an outlay of ₹76,000 crore (approximately US$10 billion). The ISM’s objective is to establish a sustainable semiconductor and display manufacturing ecosystem in India, reducing import reliance and positioning India as a global hub for electronics design and manufacturing.
The ISM provides significant financial incentives across the semiconductor value chain:
- Up to 50% fiscal support of eligible project costs for approved silicon CMOS wafer fabrication units, display fabrication units, compound semiconductor/silicon photonics/sensors fabs, and OSAT facilities.
- The Design Linked Incentive (DLI) Scheme offers reimbursement of up to 50% of eligible design expenditure and access to Electronic Design Automation (EDA) tools.
- State governments, like Uttar Pradesh, offer additional incentives such as capital subsidies, land support, and power-tariff benefits.
As of late October 2025, the ISM has approved 10 semiconductor projects across six states, attracting over ₹1.6 trillion (approximately US$18–19 billion) in investments.
A Synergy of Strengths: HCL and Foxconn’s Collaborative Edge
This joint venture combines the strengths of HCL and Foxconn. HCL possesses over 25 years of experience in semiconductor equipment manufacturing, with expertise in IC design, testing, and validation. HCL Technologies is actively expanding its semiconductor services business to support HCL Corporate in chip processing.
Foxconn, the world’s largest contract manufacturer and a leader in electronics manufacturing, is diversifying into specialized semiconductor chip production. The Taiwanese company is expanding its semiconductor involvement, including plans for fabrication plants and partnerships, such as with Nvidia for automotive chips.
This Indian venture is Foxconn’s second under the India Semiconductor Mission, demonstrating its commitment to the Indian market and its global supply chain role. This collaboration, particularly for an Outsourced Semiconductor Assembly and Test (OSAT) facility, aims for robust and efficient DDIC production.
Noida’s Rise: Economic and Technological Ripple Effects
Economic Impact
Noida is emerging as a major semiconductor manufacturing hub, attracting investments exceeding ₹32,000 crore (approximately $3.8 billion USD). This influx is anticipated to stimulate growth in ancillary industries and contribute to regional development. The Uttar Pradesh Semiconductor Policy 2024 offers incentives like capital subsidies and land rebates to attract these investments.
These projects are projected to create approximately 15,000 direct and indirect job opportunities, requiring skilled professionals such as:
- Engineers
- Technicians
- Quality control specialists
This will boost the local economy and enhance India’s position in global technology supply chains, aligning with the goal of a $1 trillion economy for Uttar Pradesh and overall economic growth for India.
Technological Impact
The new facility will reduce India’s dependence on imported chips, enhancing national security and economic stability. By focusing on advanced manufacturing of semiconductors, including ICs, microchips, and DDICs, the region will adopt cutting-edge production processes and foster technological innovation.
Uttar Pradesh is developing a high-tech ecosystem encompassing chip design and related technologies like Artificial Intelligence (AI), Internet of Things (IoT), Machine Learning (ML), and Quantum Computing, aligning with global AI trends.
Skill development, R&D, and proximity to the Jewar International Airport will further solidify Noida’s status as a high-tech industrial hub, improving logistics and global export connectivity.
Conclusion: India’s Bright Semiconductor Horizon
The HCL-Foxconn joint venture in Noida symbolizes India’s commitment to becoming a global leader in semiconductor manufacturing. By focusing on critical display driver chips and leveraging strategic partnerships, India is addressing domestic needs and building a resilient, self-reliant electronics manufacturing ecosystem.
This initiative, driven by the India Semiconductor Mission and supported by state policies, promises significant economic growth, substantial job opportunities, and will propel Uttar Pradesh and India into a new era of technological innovation. With the groundbreaking ceremony scheduled for January 2026, India’s semiconductor industry is poised for a bright future, powering digital advancements.
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