Cabinet Approval of HCL-Foxconn JV a Fillip for Semicon Manufacturing in India India's semiconductor market is expected to grow from USD 52 billion in 2024 to USD 103.4 billion by 2030, according to a report by the India Electronics and Semiconductor Association (IESA).

The Union Cabinet's approval of the INR 3706-crore HCL-Foxconn outsourced semiconductor assembly and test (OSAT) facility under the India Semiconductor Mission is a major fillip for the semiconductor manufacturing industry in India.

The government said that already five semiconductor units are in advanced stages of construction in the country. With this sixth unit, Bharat moves forward in its journey to develop the strategically vital semiconductor industry, Union Minister Ashwini Vaishnaw said during the announcement.

The proposed unit will be located near the upcoming Jewar airport, within the Yamuna Expressway Industrial Development Authority (YEIDA) region. The facility will produce display driver chips for mobile phones, laptops, automobiles, PCs, and various other display-equipped devices. It is designed to handle 20,000 wafers every month, with an output capacity of 36 million units per month.

"With an investment of INR 3,700 crore, the project brings large-scale advanced packaging and testing capabilities specifically for display driver ICs—addressing a critical gap in India's display and electronics value chain. This isn't just about building infrastructure—it reflects India's growing maturity in semiconductor manufacturing, with trusted partners, strategic intent, and industrial scale," said Ashok Chandak, President, IESA and SEMI India.

Foxconn, one of the world's largest electronics manufacturers, is expected to bring world-class expertise in chip packaging and testing—core to the downstream semiconductor supply chain. HCL Group on the other hand is expected to bring robust technology services, engineering strength, and global relationships, and add local execution capability and talent access.

"Together, this joint venture lays the foundation for India to emerge as a preferred global hub for semiconductor OSAT operations—truly aligning with the vision of 'Make in India, Make for the World' with great support from center and states. This project can become landmark as it can create major value addition in India's electronics manufacturing for mobiles, laptops, consumer, automotive, etc.," Chandak added.

India's semiconductor ecosystem is growing rapidly as cutting-edge design infrastructure has been established in several states.

"Students and entrepreneurs in 270 academic institutions and 70 startups are working on world class latest design technologies for developing new products. 20 products developed by the students of these academic students have been taped out by SCL Mohali," Vaishnaw said.

India's semiconductor market is expected to grow from USD 52 billion in 2024 to USD 103.4 billion by 2030, according to a report by the India Electronics and Semiconductor Association (IESA). The report attributes this growth to major sectors including mobile handsets, information technology (IT), telecommunications, consumer electronics, automotive, aerospace, and defence.

Key global players such as Applied Materials and Lam Research have set up operations in India. US-based Applied Materials recently made a USD 50 million investment to establish an R&D facility in Bengaluru. Similarly, Lam Research said it will invest over INR 100 billion (USD 1.2 billion) in the next few years in Karnataka.

In April this year, Axiro Semiconductor, subsidiary of CG Power and Industrial Solutions (part of Murugappa Group), opened a fabless semiconductor design centre in Bengaluru. Axiro said it is poised to fuel innovation across high-impact sectors including 5G/6G, strategic defence, satellite communications, and industrial IoT. CG Power and Industrial Solutions recently invested USD 36 million, marking CG Power's formal entry into the semiconductor design business.

Axiro said its fabless model enables a sharp focus on chip design and IP creation while leveraging global foundries for production, ensuring rapid scalability, cost optimization, and high performance.

Vellayan Subbiah, Chairman of CG Power and Industrial Solutions said that "breakthrough innovations" and an "unwavering commitment to excellence" will continue to propel Axiro Semiconductor forward. The company aims to deliver cutting-edge solutions for AI, automotive, and IoT applications, further accelerating India's integration into the global semiconductor value chain.