Foxconn and HCL Group Forge Semiconductor Partnership in India, Approved by Indian Government

Taiwan's Foxconn aims to establish a significant manufacturing presence in Uttar Pradesh, with the potential to revolutionize the local market.

TAIPEI (Taiwan News) – The Indian government has given the green light to a joint venture factory spearheaded by Taiwan's Foxconn and the IT firm HCL Group, a project valued at NT$13.13 billion (US$435 million).

The facility, strategically positioned in Uttar Pradesh, is designed to produce 20,000 wafers each month. These wafers will be crucial for the supply of display driver chips destined for a wide range of devices, including mobile phones, laptops, and automobiles, according to Nikkei Asia. The commencement of operations is targeted for 2027, marking Foxconn’s second foray into semiconductor manufacturing in India, as reported by Reuters.

Electronics Minister Ashwini Vaishnaw highlighted the project’s potential to not only meet Foxconn’s global demands but also to draw display panel manufacturers to India. “This is a critical step in developing the semiconductor ecosystem,” he stated at a press briefing in New Delhi.

India has already authorized six chip fabs under its US$10 billion semiconductor incentive program, launched in 2021. These projects include Tata Group’s fabrication plant in collaboration with Taiwan’s Powerchip, located in Gujarat, and a separate Tata assembly unit in Assam.

Despite offering substantial subsidies, covering up to half of project costs, India's initial attempts at semiconductor manufacturing have encountered setbacks. Notable ventures, such as a US$19 billion joint venture between Vedanta and Foxconn, and an ISMC plan supported by Tower Semiconductor, did not come to fruition.

Vaishnaw described HCL as "a very good partner" with extensive experience in electronics manufacturing, emphasizing the increased viability of this joint venture compared to prior initiatives. He refrained from commenting on the potential for additional incentives.