India's Sixth Chip Unit: HCL-Foxconn JV Gets Cabinet Nod for Jewar Plant

India's sixth semiconductor plant, a INR 3,706 crore facility that would be established in Jewar, Uttar Pradesh, through a joint venture between HCL and Foxconn, was authorised by the Union Cabinet on 14 May.

The facility will begin producing display driver chips for PCs, laptops, cars, and cell phones in 2027. The monthly production capacity of the factory is 20,000 wafers. The monthly production capacity of the design is 36 million pieces.

There are now five semiconductor units at advanced phases of development. According to a national government statement, India advances in its efforts to grow the strategically important semiconductor sector with the establishment of this sixth facility.

Semiconductor Industry Now Shaping Up in India

The nation's semiconductor sector is currently taking shape. Several states in the nation now have top-notch design facilities. The design businesses are being actively pursued by state governments.

The central government also stated that this new unit will contribute to the Prime Minister's vision of Atmanirbhar Bharat, given the growing demand for semiconductors due to the rapid growth of the manufacturing of laptops, mobile phones, servers, medical devices, power electronics, defence equipment, and consumer electronics in Bharat.

HCL, however, has a lengthy history of creating and producing hardware. Foxconn is a significant global manufacturer of electronics.

Alluring Sector for Entrepreneurs, Researchers and Students

In order to create new goods, students and entrepreneurs from 70 businesses and 270 academic institutions are working on cutting-edge design technology. Twenty of the items created by these students have been recorded by SCL Mohali.

The ecosystem partners have also set up shop in India as the nation advances in its semiconductor journey. Lam Research and Applied Materials are two of the biggest producers of equipment. Both are currently present in India.

Many gas and chemical providers, like Linde, Inox, Air Liquide, and Merck, are preparing for the expansion of India's semiconductor sector.

Government data shows that the nation's electronics manufacturing production has increased fivefold during the last ten years.

The government is getting closer to its objective of raising value addition in electronics from the current 20% to over 35% by 2030 with the addition of this unit under the ISM. IT minister Ashwini Vaishnaw has mentioned about this goal numerous times.

Foxconn is attempting to establish a semiconductor unit under the ISM for the second time. The Taiwan-based business partnered with Vedanta in 2023, but the two parties eventually parted ways.

According to the minister, the Foxconn-HCL factory should satisfy Foxconn's worldwide supply chain requirements and meet 40% of India's domestic demand for display driver chips.