India’s semiconductor dreams are fast turning into reality. The Union Cabinet has greenlit the HCL Foxconn chip plant, a ₹3,706 crore joint venture to be set up in Jewar, Uttar Pradesh. This new semiconductor assembly and packaging unit will not only be India’s sixth such facility but also the first in the state.
It promises to create 2,000 jobs and produce up to 36 million display driver chips monthly for mobile phones, laptops, cars, and more. With this, India strengthens its position in the global chip race, while also attracting major investments under the government’s ₹76,000 crore India Semiconductor Mission.
A Strategic Leap for India’s Semiconductor Ecosystem
Under the India Semiconductor Mission, the new plant marks Foxconn’s second serious attempt at joining India’s semiconductor landscape. The facility, to be developed along the Yamuna Expressway near Jewar Airport, will be equipped to process 20,000 wafers per month. These will be used in producing display driver chips essential for electronics, automotive, and IT hardware.
Foxconn’s earlier joint venture with Vedanta in 2022 didn’t materialize due to the lack of a viable technology partner. However, this time, with HCL onboard—a tech behemoth with over ₹4.45 lakh crore in market cap—the groundwork looks far more solid.
The project is backed by ₹1,500 crore in government incentives. As per IT Minister Ashwini Vaishnaw, chip production from the plant is expected to begin in 2027, contributing to around 40% of India’s domestic demand.
HCL Technologies’ Stock Reacts to the News
Following the Cabinet announcement, HCL Technologies’ shares rose by over 1%, closing at ₹1,637.75. Investors are optimistic about HCL’s strategic diversification into chip manufacturing, which adds another growth lever alongside its core IT and R&D services.
The company reported a 6% revenue growth in Q4 FY25, reaching ₹30,246 crore, with net profit jumping 8% year-on-year. The semiconductor venture is expected to complement its strong Engineering & R&D portfolio, which contributed 17.1% of Q4 revenues.
For FY26, HCL has forecasted a 2–5% YoY growth in constant currency revenue and an EBIT margin between 18% and 19%, indicating cautious but stable momentum.
Jewar Plant: A Turning Point for Uttar Pradesh
The upcoming chip unit is a significant win for Uttar Pradesh’s industrial growth. It will not only generate 2,000 direct jobs but also catalyse supporting industries and infrastructure near Jewar Airport.
This is the sixth approved project under the semiconductor mission. Other projects include the Tata-PSMC fab in Gujarat, Micron Technology’s facility, and Murugappa Group’s partnership with Japan’s Renesas. The first made-in-India chip is expected to hit the market by late 2025, and the HCL-Foxconn unit will add a major push in 2027.
Global giants like Applied Materials, Lam Research, Merck, and Inox are also establishing bases in India to supply critical equipment, gases, and chemicals, indicating growing confidence in India’s chip ecosystem.
What It Means for India’s Global Tech Ambitions?
The approval of the HCL Foxconn chip plant aligns with India’s goal to become a global hub for semiconductor manufacturing. It builds on the government’s $10 billion Phase-I blueprint and the recently announced $15 billion Phase-II incentives to support raw materials and infrastructure.
With a robust policy push, strong private-sector participation, and increasing global interest, India is no longer on the sidelines of the semiconductor race. It’s gearing up to become a key player, supplying chips both locally and for international demand.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
