India’s semiconductor mission is set to receive a major boost in Uttar Pradesh, with a joint OSAT (Outsourced Semiconductor Assembly and Testing) unit by HCL and Foxconn proposed in the state. The facility, with a planned production capacity of 20,000 wafers per month, is expected to play a strategically significant role in advancing India’s semiconductor self-reliance.
Officials said the ground-breaking ceremony is likely to be held in mid-January, following which work on the project will begin at a fast pace. The initiative aligns with Chief Minister Yogi Adityanath’s vision of building a self-reliant, technology-driven economy and positioning Uttar Pradesh as a preferred destination for global investments.
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The proposed unit will be established near Jewar Airport in the Yamuna Expressway Industrial Development Authority (YEIDA) area, after receiving approval from the central government, HCL Group Chairperson Roshni Nadar Malhotra said. With an estimated investment of Rs 3,706 crore, the project will become Uttar Pradesh’s first semiconductor assembly and testing facility.
The plant will process 20,000 silicon wafers every month, enabling large-scale production of semiconductor chips. In the semiconductor industry, wafers form the base of chip manufacturing, with hundreds to thousands of chips produced from a single wafer depending on the technology used. Industry experts note that such capacity could translate into the production of millions of chips each month, significantly strengthening domestic manufacturing.
The facility will primarily manufacture display driver chips, which are widely used in mobile phones, laptops, personal computers, automobiles, and other electronic devices. At present, India relies heavily on imports for these components. Officials said the project is expected to reduce import dependence and strengthen the domestic semiconductor supply chain.
The HCL–Foxconn partnership is being viewed as a combination of technical expertise and global manufacturing experience. In addition to production, the project will also focus on semiconductor skill development, helping build a trained workforce capable of supporting high-volume chip manufacturing.
Experts believe the project will not only enhance Uttar Pradesh’s position in the semiconductor value chain but also place India more firmly on the global semiconductor manufacturing map.