The Cabinet’s approval of HCL and Hon Hai Technology Group (Foxconn) joint venture (JV) to set up outsourced semiconductor assembly and test (OSAT) unit in Jewar, Uttar Pradesh, marks a significant milestone under the India Semiconductor Mission, said Roshni Nadar Malhotra, Chairperson, HCL Group, on Thursday. Foxconn also said that this landmark decision represents a strong vote of confidence in the company’s long-term commitment to India’s semiconductor and electronics manufacturing ecosystem. The upcoming plant will manufacture display driver chips used in mobile phones, laptops, automobiles, personal computers and other devices with displays. HCL Group and Hon Hai Technology Group (Foxconn) have received Union Cabinet’s approval on Wednesday to set up an OSAT facility to be located at Yamuna Expressway Industrial Development Authority (YEIDA) region near Jewar airport, Uttar Pradesh. This unit is the first-of-its-kind to be established in Uttar Pradesh under the Mission and is expected to contribute significantly to meeting domestic demand for such chips. The project will also be eligible for support under the government’s incentive scheme for semiconductor manufacturing. “Our partnership combines HCL’s deep-rooted engineering DNA and depth in technology with Foxconn’s semiconductor capabilities. This collaboration will support key sectors such as consumer electronics, automotive and industrial systems,” Malhotra said. Job creation The facility, with a capacity of 20,000 wafers per month, will help meet the growing demand for advanced technologies, she said. “It is expected to generate over 3,500 jobs. We are also focused on building semiconductor skills and enabling India’s workforce in this field. This initiative is aligned with the vision of Aatma-Nirbhar Bharat, and we are happy to support it,” Malhotra added. Prime Minister Narendra Modi also said in a post in X (formally twitter), “India’s strides in the world of semiconductors continue! Today’s Cabinet decision regarding the establishment of a semiconductor unit in Uttar Pradesh will boost growth and innovation. It will create innumerable opportunities for the youth as well.” “This OSAT venture reflects our strong belief in local partnerships, innovation and India’s potential to emerge as a major hub for advanced semiconductor packaging and testing. As we enter the execution phase, Foxconn remains focused on building local capabilities, nurturing talent and delivering world-class manufacturing outcomes in India,” a spokesperson at Foxconn said. Published on May 15, 2025