Noida, Feb 22: Foxconn-HCL semiconductor JV, India Chip, will be able to meet about 25 per cent of total domestic requirement of chips that are used for making digital screen of electronic products, including mobile phones, laptop and TV, HCL Group Chairman Roshni Nadar Malhotra said on Saturday.
Prime Minister Narendra Modi laid the foundation of The India Chip Pvt Ltd — the HCL Group and Foxconn joint venture for Outsourced Semiconductor Assembly & Test (OSAT) facility — will come up in the Yamuna Expressway Industrial Development Authority (YEIDA) at Jewar, Greater Noida.
“We do see that the maximum demand will come from India itself, but typically around 60-70 per cent of my demand should get consumed domestically, while we want to kind of export 20-30 per cent. Around 25 per cent of the entire domestic demand is what we can consume,” HCL Group Chairperson Malhotra said 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 that will produce display driver chips. Malhotra said the Centre and the state will provide a combined 70 per cent of the total projected cost and the rest will be investment 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 all the display drivers required for manufacturing displays in India are imported. “This OSAT in display driver integrated circuits is the first of its kind to actually cater to the domestic demand because India imports those chips,” she said.
