New Delhi, February 21 Foxconn-HCL semiconductor JV, India Chip, will be able to meet about 25 per cent of the total domestic demand for chips used in the manufacturing of electronic products, including mobile phones, laptops, and TVs. HCL Group Chairman Roshni Nadar Malhotra said this on Saturday.
Prime Minister Narendra Modi laid the foundation stone for The India Chip Pvt Ltd – a joint venture between HCL Group and Foxconn for Outsourced Semiconductor Assembly & Test (OSAT) facility – which will be located in the Yamuna Expressway Industrial Development Authority (YEIDA) at Jewar, Greater Noida.
"We anticipate that the maximum demand will come from India itself. Typically, around 60-70 per cent of my demand should be met domestically, while we aim to export 20-30 per cent. We can consume about 25 per cent of the entire domestic demand," said HCL Group Chairperson Malhotra after the ceremony.
India Chip Pvt Ltd is a 60:40 joint venture between HCL Group and Foxconn. The advanced OSAT facility is expected to be operational by 2028. The company has earmarked an investment of Rs 3,700 crore over the next few years in the facility, which will produce display driver chips.
Malhotra said that the Centre and the state will provide a combined 70 per cent of the total projected cost, while the remaining will be invested by the company.
The investment is expected to create over 3,500 direct and indirect jobs, build local supply chains, and attract ecosystem partners across the semiconductor value chain.
With a planned capacity to process 20,000 wafers per month, the facility aims to meet India's growing domestic demand for semiconductor components while strengthening a resilient, self-reliant semiconductor supply chain.
Malhotra said that all the display drivers required for manufacturing displays in India are currently imported.
"This OSAT for display driver integrated circuits is the first of its kind to actually cater to the domestic demand, as India imports these chips," she said.
