India approved a new semiconductor factory by Taiwan’s Foxconn and local tech giant HCL Group on Wednesday, advancing Prime Minister Narendra Modi’s strategy to establish the country as an electronics manufacturing hub.
The joint venture, requiring an investment of 37.06 billion rupees ($435 million), will be located near the upcoming Jewar airport in Uttar Pradesh. The facility will produce display driver chips for mobile phones, laptops, and automobiles with a monthly capacity of 20,000 wafers, Information Minister Ashwini Vaishnaw announced at a cabinet briefing.
This marks the sixth semiconductor project approved under India’s Semiconductor Mission, with commercial production expected to begin in 2027. The plant aims to generate about 2,000 jobs and produce 36 million display driver chips monthly.
Modi has prioritized chipmaking to reduce India’s dependence on imports and boost its position in global electronics manufacturing. The country currently has no operational chip facilities, though five other approved projects are in various stages of development, including those by Micron Technology and Tata Electronics.
Foxconn’s semiconductor ambitions in India faced setbacks last year when its $19.5 billion venture with Vedanta collapsed amid cost concerns. The new partnership with HCL signals renewed momentum in India’s push to develop a domestic semiconductor ecosystem as global tech giants increasingly view the country as both a manufacturing hub and strategic market.
