India Chip has begun building its Noida plant, which will process up to 20,000 wafers per month once operational.

India Chip, a joint venture between HCL Group and Foxconn, has begun construction of its semiconductor facility in Noida. The foundation stone for the project was laid a few days ago by Prime Minister Narendra Modi, who attended the ceremony virtually along with Uttar Pradesh Chief Minister Yogi Adityanath and Union IT Minister Ashwini Vaishnaw.

Located near Jewar along the Yamuna Expressway, the upcoming plant will operate as an advanced Outsourced Semiconductor Assembly and Test (OSAT) unit. With an investment of Rs 3,700 crore, the facility is designed to assemble, package and test display driver chips—critical components that power screens in smartphones, televisions, laptops and other electronic devices. Once fully operational in 2028, the plant is expected to process up to 20,000 wafers per month.

Structured as a 60:40 partnership between HCL Group and Foxconn, India Chip aims to strengthen domestic semiconductor capabilities. In addition to wafer processing, the OSAT unit will carry out assembly and testing to ensure chips meet performance and reliability standards before integration into consumer products. The company estimates the facility could meet nearly 25 per cent of India’s demand for display driver chips—currently entirely imported—while exporting 20–30 per cent of its output to global markets.

As India’s electronics manufacturing sector expands, particularly in mobile phones and consumer electronics, demand for display components has grown sharply. By localising production of display driver integrated circuits, India Chip seeks to reduce import dependence and address a key gap in the value chain.

The project is expected to generate over 3,500 direct and indirect jobs and help foster a broader semiconductor ecosystem in the region, including suppliers, logistics providers and ancillary industries. With construction now underway and operations slated for 2028, the Noida facility is being viewed as a significant step in India’s efforts to build a resilient, self-reliant semiconductor supply chain and move up the electronics manufacturing value chain.