Display Driver Chip Unit to Boost India’s Strategic Electronics and Semiconductor Ambitions
In a major development toward India’s goal of becoming a global semiconductor hub, the Union Cabinet on May 14 approved a ₹3,706-crore semiconductor fabrication project jointly promoted by HCL and Foxconn. The upcoming facility will be located in Jewar, Uttar Pradesh, and will be tasked with manufacturing display driver chips for a wide range of applications including smartphones, laptops, automobiles, and other electronic devices. The announcement was made by Union IT and Electronics Minister Ashwini Vaishnaw during a press briefing following the cabinet decision.
Highlights
HCL-Foxconn JV approved for semiconductor plant in Jewar, Uttar Pradesh.
Total investment pegged at ₹3,706 crore for the fab unit.
Facility to manufacture display driver chips for smartphones, laptops, automobiles, and more.
Production to begin by 2027; capacity of 36 million chips per month.
Plant will process 20,000 wafers monthly, targeting global demand.
Strategic Chip Manufacturing to Begin in 2027 Near Jewar Airport
The new semiconductor fabrication unit will be situated near the upcoming Noida International Airport in the Yamuna Expressway Industrial Development Authority (YEIDA) region, highlighting the government’s strategy to co-locate advanced electronics manufacturing facilities near key logistics hubs. According to Minister Vaishnaw, the facility will process up to 20,000 wafers per month and is designed to produce approximately 36 million display driver chips monthly. These chips are critical components used in high-resolution screens for consumer electronics, automotive displays, and industrial systems, and are currently largely imported by India.
Highlights
Location: YEIDA region near Noida International Airport, Jewar.
Production timeline: Commercial operations expected by 2027.
Manufacturing target: 20,000 wafers/month translating to 36 million chips/month.
Strategic product focus: Display driver ICs used in smartphones, cars, laptops, and industrial devices.
Partnership Leverages HCL’s Hardware Legacy and Foxconn’s Global Manufacturing Scale
The semiconductor unit brings together HCL’s decades-long experience in hardware engineering and Foxconn’s globally established electronics manufacturing ecosystem. In an official government statement, it was noted that the HCL-Foxconn plant would serve both domestic and global demand, including Foxconn’s internal supply chains. Vaishnaw also noted that this project could catalyze future investments in full-fledged display panel manufacturing in India, offering a vertically integrated domestic ecosystem for display technologies.
Highlights
HCL to provide engineering depth; Foxconn brings global scale in manufacturing.
Unit will feed into Foxconn’s global supply chain, enhancing India’s export potential.
Likely to trigger future investments in display panel production.
Facility aligns with government’s ‘Make in India’ and Atmanirbhar Bharat initiatives.
India’s Expanding Semiconductor Landscape Now Includes Six Key Units
The HCL-Foxconn unit will become the sixth major semiconductor fabrication or assembly project approved under India’s semiconductor mission. Other projects in advanced stages of construction include Micron Technology’s packaging and test unit in Sanand, Gujarat; Tata Electronics’ fabrication unit in Dholera in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC); Tata Semiconductor Assembly and Test Pvt Ltd in Morigaon, Assam; CG Power’s assembly unit in Sanand with Renesas Electronics Corporation (Japan) and Stars Microelectronics (Thailand); and Kaynes Semicon’s OSAT plant in Sanand.
Highlights
Total of six semiconductor facilities now under active development across India.
Key players: Micron, Tata Electronics, CG Power, Kaynes, and now HCL-Foxconn.
Locations include Gujarat (Sanand, Dholera), Assam (Morigaon), and Uttar Pradesh (Jewar).
Strategic technology partnerships with Taiwan, Japan, and Thailand-based firms.
Government Highlights Surge in Demand for Chips Amid Digital and Defence Expansion
Citing the rapid rise in domestic manufacturing of laptops, smartphones, servers, medical electronics, power devices, and defence equipment, the government underscored the need for indigenous semiconductor capabilities. Minister Vaishnaw said the new unit directly supports Prime Minister Narendra Modi’s vision of a self-reliant India (Atmanirbhar Bharat) and emphasized India’s rising technological stature. He also added that many global powers are now actively seeking co-production arrangements with India in sectors like artificial intelligence, electronics, and defence systems.
Highlights
Semiconductor demand rising due to expansion in electronics, AI, defence sectors.
New fab aligns with India’s digital growth and national security imperatives.
Government projects India as a trusted global partner in high-tech co-production.
Facility to support both domestic demand and strategic exports in chip technology.
