The Union Cabinet, led by Prime Minister Narendra Modi, has approved a joint venture between HCL and Foxconn to establish a semiconductor unit near the Jewar airport in the Yamuna Expressway Industrial Development Authority (YEIDA) region. This marks the sixth semiconductor unit approved under the India Semiconductor Mission, with five others already in advanced stages of construction.

Key Features:

• Strategic Push: This initiative is a significant step in India's journey to develop a strategically vital semiconductor industry.
• Joint Venture: The unit is a collaboration between HCL, known for its hardware development and manufacturing, and Foxconn, a global leader in electronics manufacturing. Foxconn holds a 40% equity stake in the venture and is expected to invest $37.2 million.
• Location: The plant will be situated near the upcoming Jewar airport in the YEIDA region. Approximately 30 acres of land have been allocated to the joint venture for the establishment of a semiconductor outsourced assembly and testing (OSAT) unit. HCL chose Uttar Pradesh as its headquarters are located in Noida, offering a strong home base advantage and familiarity that would make it smoother to manage.
• Production Capacity: The plant is designed to process 20,000 wafers per month, with a design output capacity of 36 million units per month.
• Product Focus: The facility will manufacture display driver chips for various devices, including mobile phones, laptops, automobiles, and PCs.
• Investment: The project involves an investment of ₹3,700 crore.
• Land Allocation: The Yamuna Expressway Industrial Development Authority (YEIDA) has allocated approximately 30 acres of land to the joint venture.

Employment Boost:

• The establishment of this semiconductor unit is expected to create approximately 2,000 jobs.

India's Semiconductor Ecosystem:

• The HCL-Foxconn joint venture is awaiting approval from the India Semiconductor Mission (ISM).
• The government believes that approval should come within two or three weeks once the required documentation is submitted.
• The semiconductor industry is developing rapidly across the country, with world-class design facilities emerging in many states.
• Students and entrepreneurs in 270 academic institutions and 70 startups are working on developing new products using the latest design technologies.
• 20 products developed by students have already been taped out by SCL Mohali.
• Several ecosystem partners have also established facilities in India, including equipment manufacturers like Applied Materials and Lam Research, as well as gas and chemical suppliers like Merck, Linde, and Air Liquide.
• UP Chief Minister Yogi Adityanath highlighted that mobile manufacturing units in Uttar Pradesh are currently producing more than 55% of mobiles and over half of all mobile components made in India.

This approval signifies a major step forward in strengthening India's semiconductor manufacturing capabilities and fostering self-reliance in the electronics sector.