New Delhi: The Union Cabinet on Wednesday approved a semiconductor manufacturing facility under the India Semiconductor Mission (ISM) by India Tech Major HCL and Taiwanese Electronics Manufacturers Foxconn.
IT Minister Ashwini Vaishnav, who announced the decision of the cabinet on Wednesday, stated that the facility would be located near the Yamuna Expressway Industrial Development Authority (Yeda) region, a “up and commission area”, near the Jewish Airport.
It is the sixth semiconductor unit being planned in the country under ISM and will start commercial production in 2027. This performance will serve as an outsource semiconductor assembly and test (OSAT) feature for the driver integrated circuit (ICS).
This is Foxconn’s second attempt to set up a semiconductor unit under ISM. In 2023, the Taiwan -based company acted closely with Vedanta, but the partnership eventually collapsed.
“HCL has a very long history of electronics and computers,” the minister said, the new unit will use the wafer-level packaging technology, especially sewn to assembled the display driver chips.
“Once the display driver ICS collects properly here, the display panel plant will also come to India.”
The cost of the facility is expected 3,706. It was not revealed how this investment would be divided between HCL and Foxconn.
Both companies could not be reached for comments.
This feature will collect display driver chips, which are a small but important part in electronic devices that control images, videos and graphics on a screen. They are used in devices such as phones, laptops and computers.
The government statement said, “The plant is designed for 20,000 wafers per month. The design production capacity is 36 million units per month.”
The minister said the Foxcon-HCL facility was expected to meet 40% of India’s domestic demand for display driver chips and support the needs of Foxconn’s global supply chain.
According to government data, in the last decade, the country’s electronics manufacturing production has increased five times. In addition to this unit under ISM, the government takes a step close to its target to increase the price in electronics for more than 20% to 35% by 2030, a target has repeated the minister on several occasions.
He did not indicate that in the next phase of the mission, ‘ISM 2.0’ was dubbed, saying that the government was focused on proper execution of the current projects.
ISM was launched in 2021 with a total outlay. 76,000 crores.
Under ISM, six semiconductor units are entitled to the central and state government subsidy for the development of semiconductors and demonstration construction ecosystems in India.
The other five units under ISM include three in Sanand, Gujarat: Micron’s ATMP (assembly, testing, marking, and packaging) unit, CG power-rains’ ATMP unit and OSAT unit of Kaynes Semicon. The other two Dhols in Gujarat have the Tata-PSMC Fab Unit, the only fabrication plant in India and the Tata ATMP unit in Morigon, Assam.
