HCL and Foxconn to Build India Chip Fab
India's Prime Minister Narendra Modi announced a new HCL-Foxconn semiconductor manufacturing facility as part of the country's push for chip sovereignty. The plant is aimed at bolstering domestic chip capacity, particularly in advanced packaging and foundry services. The initiative seeks to reduce India's reliance on semiconductor imports and strengthen its position in the global supply chain.
- The joint venture, named India Chip Private Limited, is a 60:40 partnership with HCL Group holding the majority stake. The facility is being established with an investment of ₹3,700 crore (approximately US$403 million). - This facility will be India's first display driver integrated circuit chip OSAT (Outsourced Semiconductor Assembly and Test) unit. It will be located in Greater Noida, Uttar Pradesh, near the upcoming Jewar Airport. - The plant is expected to be operational by 2028 and will have a planned production capacity of 20,000 wafers per month. - The project falls under the India Semiconductor Mission (ISM), a government initiative with an initial outlay of ₹76,000 crore (around $10 billion) to incentivize semiconductor manufacturing. The venture could receive 60-70% of the total investment from central and state government incentives. - Foxconn's strategy is to focus on specialized semiconductor chip production rather than competing on advanced chips. This OSAT plant will package, assemble, and test silicon wafers from foundries to produce finished semiconductor chips for mobile phones, laptops, and automotive electronics. - The project is anticipated to create over 3,500 direct and indirect jobs and will help develop a local supply chain and ecosystem partners. - To address the talent gap, HCL plans to partner with Foxconn to train and upskill the local workforce, requiring an estimated core of 600 to 800 high-tech engineers for the facility. - This is the sixth unit sanctioned under the India Semiconductor Mission and the first semiconductor facility to be established in the state of Uttar Pradesh.
