Union Cabinet approves ₹3,706 Crore HCL-Foxconn semiconductor unit in YEIDA, UP

On May 14, 2025, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved a joint venture between HCL Technologies and Foxconn to establish a semiconductor packaging unit in Yamuna Expressway Industrial Development Authority (YEIDA), Uttar Pradesh, under the India Semiconductor Mission. The project, with an outlay of ₹3,706 crore, will focus on manufacturing display driver chips for mobile phones, laptops, automobiles, PCs, and other devices with displays. The plant is designed to produce 20,000 wafers per month, with an output capacity of 36 million units per month.
This marks the sixth semiconductor unit approved under the mission, with five others already in advanced construction stages. HCL brings its experience in hardware development and manufacturing, while Foxconn contributes its expertise as a global electronics manufacturing company. Foxconn has acquired a 40% stake in the joint venture for approximately ₹3.12 billion (USD 37 million) and plans to invest up to ₹4.24 billion (USD 50.5 million) in total. The investment includes contributions through its subsidiary, Big Innovation Holdings, and Foxconn Hon Hai Technology India Mega Development Private Limited.
The semiconductor ecosystem in India is expanding, with world-class design facilities established in multiple states and state governments actively pursuing design firms. Around 270 academic in...