In a landmark development for India's technology and manufacturing ambitions, Uttar Pradesh is poised to get its first semiconductor fabrication facility. A joint venture between the HCL Group and Taiwan's electronics giant Foxconn will establish a major chip assembly and testing plant in the state, with the groundbreaking ceremony scheduled for mid-January 2026.
A Strategic Investment in India's Chip Future
The project, coming up in Sector 28 of the Jewar area in Gautam Budh Nagar, represents a significant investment of approximately Rs 3,706 crore. It falls under the OSAT (Outsourced Semiconductor Assembly and Test) category, a critical segment of the global semiconductor value chain. The primary output of this facility will be Display Driver Integrated Circuits (DDICs).
These DDIC chips are often described as the "brain" for screens, controlling the display functions in a vast array of modern devices. Their importance spans across smartphones, televisions, personal computers, in-car infotainment systems, and wearable gadgets like smartwatches and smart glasses. Technologically, they enable advanced features including high-resolution 4K and UHD displays, microLED, OLED, and AMOLED screens, along with touch control and foldable screen capabilities.
Reducing Import Dependency and Boosting UP's Economy
An industry expert highlighted the unit's national strategic value, stating, "As of now, India imports these chips. When functional, the unit — which will have a production capacity of 20,000 wafers per month — will bring down India's dependence on foreign players." The expert further emphasized that its location near the national capital within Uttar Pradesh adds to its strategic importance and positions it as a key driver for the state's economic goals.
Officials echoed this sentiment, noting the project will serve as a foundational building block for semiconductor operations in UP. "The unit that is set to advance India's goal of semiconductor self-reliance is due for a groundbreaking ceremony sometime in mid-Jan, after which rapid construction will begin," an official confirmed.
Expertise, Scale, and Skilled Workforce Development
According to a spokesperson citing HCL Group chairperson Roshni Nadar Malhotra, the venture is expected to bring global technical expertise to India and significantly strengthen skill development in the high-tech semiconductor sector. Experts point out that with a capacity to process 20,000 silicon wafers every month, the facility will support the mass production of millions of microchips. This scale is crucial for meeting the burgeoning domestic demand from consumer electronics and automotive industries, thereby reducing import bills.
An official spokesperson credited the Uttar Pradesh government for creating a lucrative and attractive investment environment that facilitated the arrival of such a high-stakes industry. Industry analysts believe this OSAT unit will firmly position Uttar Pradesh as a significant player in the global semiconductor value chain. It directly links the state to future technology trends while fostering the development of a highly skilled workforce capable of operating advanced chip-manufacturing processes.
The HCL-Foxconn plant in Jewar is more than just an industrial project; it is a critical step towards India's technological sovereignty and a testament to Uttar Pradesh's evolving industrial landscape.
