^{Source: Rediff Money}

India's Union Cabinet has approved a ₹3,706 crore ($435 million) investment for a semiconductor manufacturing plant, a joint venture between Taiwan's Foxconn and India's HCL Group. The facility will be located near the upcoming Noida International Airport in Jewar, Uttar Pradesh, and is expected to commence operations by 2027 .

Facility Details

• Location: 48-acre site in Sector 28, Yamuna Expressway Industrial Development Authority (YEIDA) region, Uttar Pradesh .
• Production Capacity: Designed to produce up to 20,000 wafers and 36 million display driver chips per month.
• Products: Display driver chips used in mobile phones, laptops, automobiles, PCs, and other consumer electronics.
• Operational Timeline: Expected to be operational by 2027.

Strategic Significance

This project is the sixth semiconductor unit approved under the India Semiconductor Mission (ISM), reflecting the government's commitment to bolstering domestic semiconductor manufacturing capabilities . The facility is anticipated to generate approximately 2,000 direct jobs, contributing to regional economic development .‍

Foxconn's Investment in India

Foxconn, officially known as Hon Hai Technology Group, has been expanding its footprint in India:

• iPhone Manufacturing: Began producing iPhones in India in 2019 and has been increasing capacity, especially after pandemic-related disruptions in China.
• Previous Ventures: In 2023, Foxconn withdrew from a $19.5 billion joint venture with Vedanta to set up a semiconductor and display production plant in India.
• Current Investments: Foxconn has invested over $1.4 billion in India as of August 2024, with business operations growing to $10 billion.

India's Semiconductor Ambitions

The Indian government has been actively promoting semiconductor manufacturing through initiatives like the ISM and a $10 billion production-linked incentive (PLI) scheme launched in 2021. Other notable projects include Tata Group's $11 billion manufacturing and testing facility and Micron's $2.7 billion chip packaging plant .‍

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The approval of the Foxconn-HCL semiconductor plant signifies a pivotal move in India's journey to become a global hub for electronics manufacturing. By reducing reliance on imports and fostering domestic production, India aims to strengthen its position in the global semiconductor supply chain.

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