Lucknow, May 15 (KNN) The Union Cabinet on Wednesday approved the establishment of a Rs 3,706 crore semiconductor manufacturing facility in Jewar, Uttar Pradesh.
The project will be developed through a joint venture between HCL and Foxconn, marking India’s sixth semiconductor plant under the government’s initiative to build domestic semiconductor capabilities.
The facility will be situated on a 48-acre plot in Sector 28 under the Yamuna Expressway Industrial Development Authority (YEIDA) and is projected to create employment opportunities for approximately 2,000 individuals.
With a design output capacity of 36 million units per month, the plant will specialise in manufacturing display driver chips for mobile phones, laptops, automobiles, personal computers, and various display-equipped devices.
Information Technology and Electronics Minister Ashwini Vaishnaw highlighted the strategic significance of the project, stating, “Once this unit is set up, the display panel plant will also come to India. This will meet 40 percent of the country’s capacity and also meet Foxconn’s requirements for the rest of the world.”
The joint venture is expected to become operational by 2027.
The land for the project has been allocated to Vama Sundari Investments (Delhi) Private Limited, a major promoter company of the HCL Group, which holds a 44.17 percent stake in HCL Technologies.
YEIDA CEO Arun Vir Singh emphasised that the project reflects Uttar Pradesh’s strategic push to attract investments in high-technology industries.
The facility will produce compound semiconductors, silicon photonics, sensor fabrication, and discrete semiconductors.
It will also conduct assembly, testing, marking, and packaging operations, which are critical for next-generation electronics development.
The Uttar Pradesh government has extended substantial support for the project, offering financial and non-financial incentives outlined in a Letter of Comfort issued to VSIPL last year.
These incentives include a capital subsidy of Rs 919 crore, a land rebate worth Rs 124 crore, and exemption from stamp duty and registration charges amounting to Rs 1.1 crore.
Additional benefits include a 10-year waiver on electricity duty, support for a dual power grid system, and subsidies on water and electricity usage.
This approval comes as part of India’s growing success in developing a semiconductor ecosystem following the central government’s introduction of a Rs 76,000 crore incentive package in December 2021.
Under this initiative, the government provides fiscal support of up to 50 percent of project costs to eligible display and semiconductor fabricators.
(KNN Bureau)
