Authority Decision
Union Cabinet Approval & Groundbreaking Ceremony: HCL-Foxconn OSAT Semiconductor Facility at YEIDA Taiwan City
The Union Cabinet chaired by Prime Minister Narendra Modi on 14 May 2025 approved establishment of one more semiconductor unit under India Semiconductor Mission. Prime Minister Narendra Modi participated in the groundbreaking ceremony of the HCL-Foxconn joint venture India Chip Pvt Ltd in YEIDA, Uttar Pradesh, on 21 February 2026, for an OSAT facility with total investment of over Rs 3,700 crore.
| Decision Authority | Union Cabinet, Government of India |
|---|---|
| Cabinet Approval Date | 14 May 2025 |
| Groundbreaking Ceremony Date | 21 February 2026, virtually via PM Narendra Modi |
| Location | Sector 28, YEIDA, Jewar, Uttar Pradesh (48 acres) |
| Investment Amount | Rs 3,700 crore |
| Project Implementer | India Chip Pvt Ltd (HCL-Foxconn joint venture) |
| Facility Type | Outsourced Semiconductor Assembly and Test (OSAT) facility under Modified Scheme for Semiconductor Assembly, Testing, Marking and Packaging (ATMP) |
| Monthly Capacity | 20,000 wafers per month; 36 million units per month design output |
| Product Focus | Display driver chips for mobile phones, laptops, automobiles, PCs, and devices with displays |
| Expected Jobs | 3,000 jobs |
| Commercial Production Timeline | Expected to commence operations by 2028 |
| JV Structure | 60:40 partnership between HCL (60%) and Foxconn (40%) |
Cabinet Decision Context & Authority
The Union Cabinet chaired by Prime Minister Shri Narendra Modi on 14 May 2025 approved establishment of one more semiconductor unit under India Semiconductor Mission, marking the sixth semiconductor unit in India's semiconductor ecosystem. The unit approved is a joint venture of HCL and Foxconn, to be set up near Jewar airport in Yamuna Expressway Industrial Development Authority (YEIDA).
Land Allotment & Operative Boundaries
Significant milestones include the allotment of 48 acres in Sector 28 to India Chip Pvt Ltd (an HCL-Foxconn joint venture) for an Outsourced Semiconductor Assembly and Test (OSAT) facility. The facility is located in the Yamuna Expressway Industrial Development Authority (YEIDA) area in Uttar Pradesh, near the upcoming Noida International Airport, spanning approximately 48 acres.
Facility Specifications & Manufacturing Scope
The OSAT facility at YEIDA will be set up by India Chip Pvt Ltd under the Modified Scheme for Semiconductor Assembly, Testing, Marking and Packaging (ATMP), with a total investment of over Rs 3,700 crore. The plant will manufacture display driver chips for mobile phones, laptops, automobiles, PCs, and devices with display. The plant is designed for 20,000 wafers per month with design output capacity of 36 million units per month.
Joint Venture Structure & Partners
India Chip Pvt Ltd is structured as a 60:40 partnership between HCL and Foxconn, establishing a state-of-the-art OSAT facility with a planned investment of ₹3,700 crore. HCL has a long history of developing and manufacturing hardware, while Foxconn is a global major in electronics manufacturing.
Groundbreaking Ceremony & Government Support
Prime Minister Narendra Modi on 21 February 2026 virtually laid the foundation stone of the HCL-Foxconn Joint Venture project – India Chip Pvt Ltd in the Yamuna Expressway Industrial Development Authority at Jewar in Greater Noida of Uttar Pradesh. The event was attended by Uttar Pradesh Chief Minister Yogi Adityanath and Union Minister for Railways, Information & Broadcasting, Electronics and IT Ashwini Vaishnaw, along with industry leaders including Roshni Nadar Malhotra and Bob Chen.
Strategic Context: Taiwan City Cluster (Region Designation)
Taiwan City is being developed across 300 acres in Sector 6 at YEIDA, with plots to be allotted to Taiwan-based companies. The project is expected to create a cluster of electronics, semiconductor, information and communications technology (ICT) and other high-tech manufacturing companies in the Yamuna City region. This OSAT facility approval is part of YEIDA's broader strategy to position the region as a high-tech manufacturing hub, leveraging proximity to Jewar International Airport and the Taiwanese ecosystem concentration.
Employment & Economic Impact
This project is expected to bring an investment of Rs 3,706.15 crore and create 3,000 jobs. The investment is expected to create over 3,500 direct and indirect jobs, build local supply chains, and attract ecosystem partners across the semiconductor value chain. For the new plant, the government is providing around Rs 1,500 crore worth of incentives under the semiconductor manufacturing scheme.
Operational Timeline & Implementation Status (as of September 2026)
The unit is expected to commence operations by 2028 and focus on manufacturing display driver chips. The foundation stone was laid on 21 February 2026. Site preparation and construction are underway as of this report date.
Development phases
Land use
Frequently asked questions
What was the Cabinet decision and when was it made?
The Union Cabinet chaired by PM Narendra Modi on 14 May 2025 approved establishment of one more semiconductor unit under India Semiconductor Mission. This was the sixth semiconductor unit approval under ISM.
Where is the facility located and how much land has been allotted?
48 acres in Sector 28 of YEIDA have been allotted to India Chip Pvt Ltd for the OSAT facility. The facility is located in the YEIDA area in Uttar Pradesh, near the upcoming Noida International Airport.
Who will operate this facility and what is the investment amount?
The OSAT facility will be set up by India Chip Pvt Ltd (HCL-Foxconn joint venture) under the Modified Scheme for Semiconductor ATMP, with total investment of over Rs 3,700 crore. It is structured as a 60:40 partnership between HCL and Foxconn.
What products will be manufactured at this facility?
The plant will manufacture display driver chips for mobile phones, laptops, automobiles, PCs, and devices with displays. It is designed for 20,000 wafers per month with a design output capacity of 36 million units per month.
When will the facility begin commercial production?
The unit is expected to commence operations by 2028 and focus on manufacturing display driver chips.
How many jobs will this project create?
This project is expected to create 3,000 jobs. The investment is expected to create over 3,500 direct and indirect jobs and build local supply chains.
What government support and incentives are provided?
For the new plant, the government is providing around Rs 1,500 crore worth of incentives under the semiconductor manufacturing scheme.
Sources
- PM to participate in groundbreaking ceremony of HCL–Foxconn Joint Venture project on 21 February
- Cabinet approves semiconductor unit in Uttar Pradesh
- YEIDA Marks 25-Year Milestone with Master Plan 2041
- PM Modi virtually lays foundation stone of HCL-Foxconn joint venture project
- Cabinet approves HCL-Foxconn joint venture under semiconductor mission
- HCL-Foxconn Semiconductor Unit in YEIDA
- PM inaugurates Jewar chip facility project, marking major leap in India's semiconductor mission
- Cabinet approves Rs 3,706 crore HCL-Foxconn semiconductor unit
- YEIDA Clears Taiwan City & medical hub to boost high-tech manufacturing, healthcare
- India Chip About Us