[News] Foxconn, HCL to Build $435 Million Semiconductor Plant in India

According to a Reuters report, India’s cabinet has approved a 37.06 billion rupee (USD 435 million) semiconductor plant to be developed as a joint venture between HCL Group and Taiwan’s Foxconn.

Citing India’s Information Minister Ashwini Vaishnaw, the report states that the plant will have a monthly capacity of 20,000 wafers and produce up to 36 million display driver chips, with commercial production expected to begin in 2027.

The proposed HCL-Foxconn facility will manufacture display driver chips for mobile phones, laptops, automobiles, PCs, and various other display devices, according to Indian media outlet Hindustan Times.

Located near Jewar airport in the northern state of Uttar Pradesh, the plant marks the sixth project approved under the India Semiconductor Mission, the report adds.

As noted by the report, Indian Prime Minister Narendra Modi has made chip manufacturing a national priority as part of his broader economic strategy. However, India currently lacks a fully operational semiconductor fabrication facility.

In 2023, Foxconn’s joint venture with Indian conglomerate Vedanta was called off due to government concerns over escalating project costs and delays in the approval of incentives, the report notes.

Meanwhile, other chip initiatives continue to progress in India. In 2024, Taiwan’s PSMC announced a collaboration with Tata Electronics to build the country’s first 12-inch fab in Dholera, Gujarat. According to Tata’s press release, the project is estimated to cost USD 11 billion and is expected to have a monthly production capacity of 50,000 wafers.

Micron is also building a USD 2.7 billion semiconductor packaging facility in India, as highlighted by Reuters.

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(Photo credit: Foxconn)