HCL will meet 25 percent of India’s demand for semiconductors.

The demand for chips, used in everything from smartphones to vehicles, is steadily increasing. In India, IT company HCL has partnered with Foxconn to manufacture chips. The two companies have formed a joint venture, India Chip Pvt Ltd.

Prime Minister Narendra Modi laid the foundation stone for India Chip Pvt Ltd in Jewar, Greater Noida, Uttar Pradesh. This is a 60:40 joint venture between HCL Group and Foxconn. This outsourced semiconductor assembly and test (OSAT) plant is expected to be operational by 2028. An investment of approximately ₹3,700 crore will be made in this plant over the next few years. The central and Uttar Pradesh governments will provide approximately 70 percent of the project cost, with the remaining investment being made by the company. It will manufacture chips used in digital screens for electronic products.

Electronics and IT Minister Ashwini Vaishnav said, “Over the last 11 years, Prime Minister Narendra Modi has transformed India into an electronics manufacturing powerhouse. India ranks third in electronics exports globally.” Uttar Pradesh Chief Minister Yogi Adityanath said, “Uttar Pradesh’s development will depend on the Prime Minister’s vision for chips.” Semiconductor imports into the country increased by approximately 18.5 percent to approximately ₹1.71 lakh crore in the last fiscal year. The central government has taken measures to increase semiconductor manufacturing, which will help reduce import dependence. Some of India’s largest business groups have entered into tie-ups with foreign companies to expand semiconductor manufacturing. Recently, the Tata Group entered into a tie-up with American semiconductor manufacturer Analog Devices.

Roshni Nadar Malhotra, Chairman of HCL Group, said, “We expect the maximum demand for semiconductors to come from India. We can meet approximately 25 percent of the country’s semiconductor demand. We plan to export 20-30 percent of our manufacturing.” The plant is expected to create more than 3,500 direct and indirect jobs. The unit will have the capacity to process approximately 20,000 wafers per month.