India Advances Semiconductor Self-Reliance with Foxconn-HCL OSAT Plant

Prime Minister Narendra Modi laid the foundation stone for a semiconductor chip manufacturing plant – a joint venture between Foxconn and HCL – in Jewar, Uttar Pradesh, on Saturday, February 21, 2026. The project marks a significant step towards India’s goal of becoming self-reliant in the semiconductor supply chain and a hub for chip manufacturing.

A Key Step Towards Semiconductor Independence

The coming up of the HCL-Foxconn Outsourced Semiconductor Assembly Test (OSAT) joint venture at Jewar in Gautam Buddha Nagar is a crucial development for India’s semiconductor ambitions. Modi emphasized that a “Made in India” chip is vital for a developed and self-reliant India.

“India is also trying to come into the top countries across the world that create the chips which power the latest equipment. The country is working simultaneously on the software and hardware aspects,” Modi stated during his address at the groundbreaking ceremony.

India Chip Private Limited: Investment and Capacity

The ₹3,700 crore OSAT JV, named India Chip Private Limited, is a 60:40 joint venture between HCL Group and Foxconn. Operations are targeted to begin by 2028. Approximately 60–70 percent of the total investment will be provided by the central and state governments through incentives under the India Semiconductor Mission and various state grants.

The plant, spanning nearly 48 acres, will initially focus on OSAT facilities across 15 acres, with a planned capacity of 20,000 wafers per month. It will also be India’s first display driver integrated circuit chip OSAT unit.

Government and Industry Perspectives

Union Electronics and Information Technology Minister Ashwini Vaishnaw highlighted the foundational role of semiconductors in driving manufacturing opportunities. Semiconductors create opportunities for various forms of manufacturing in countries where these silicon chips are produced.

Roshni Nadar Malhotra, chairperson of the HCL Group, described the project as a significant new chapter in the group’s growth story, building on its long-standing engineering legacy and contribution to India’s technology and manufacturing ecosystem.

Bob Chen, president of Foxconn’s semiconductor business group, stated that the objective of India Chip is to establish a reliable assembly and testing operation to support both domestic and global customers. He emphasized the collaborative efforts of Foxconn, HCL Group, the Indian government, and the Uttar Pradesh state government.

Rare Earth Minerals and the Semiconductor Industry

Prime Minister Modi also underscored the importance of securing critical rare earth minerals essential for the semiconductor industry, stating that India is taking strong measures in this direction.