THEBUSINESSBYTES BUREAU

NEW DELHI, FEBRUARY 20, 2026

In a decisive step towards strengthening India’s position in the global semiconductor value chain, Prime Minister Narendra Modi will participate in the groundbreaking ceremony of the HCL–Foxconn joint venture semiconductor project, India Chip Pvt. Ltd., at the Yamuna Expressway Industrial Development Authority (YEIDA) in Uttar Pradesh on February 21 via video conferencing. The Prime Minister will also address the gathering, underlining the strategic importance of the project for India’s technological and economic future.

The upcoming facility, an Outsourced Semiconductor Assembly and Test (OSAT) unit, will be developed with an investment exceeding ₹3,700 crore under the Modified Scheme for Semiconductor Assembly, Testing, Marking and Packaging (ATMP). The project represents a crucial building block in India’s semiconductor mission, aimed at reducing import dependence, strengthening domestic manufacturing capabilities and integrating the country more deeply into resilient global supply chains.

Positioned at YEIDA, a rapidly emerging electronics and manufacturing hub, the OSAT facility is expected to support a wide spectrum of industries including mobile phones, tablets, laptops, automotive electronics and consumer devices. By enabling advanced chip packaging and testing within the country, the project will help bridge a critical gap in India’s semiconductor ecosystem, which has so far been heavily reliant on overseas facilities for backend processing.

The joint venture between HCL and Foxconn brings together domestic technological expertise and global manufacturing scale, reflecting a model of international collaboration aligned with national priorities. The initiative is also expected to catalyse growth in ancillary sectors such as component manufacturing, logistics, materials, cleanroom services and semiconductor equipment, creating a multiplier effect across the electronics value chain.

Beyond industrial capacity, the project is poised to deliver substantial employment generation, offering thousands of direct and indirect job opportunities for engineers, technicians and skilled professionals. It is also expected to drive skill development, technology transfer and innovation, contributing to the creation of a specialised semiconductor workforce in India.

The ceremony marks another milestone in the government’s broader strategy to position India as a trusted global destination for high-end electronics manufacturing. With multiple semiconductor and display fabrication proposals underway, the HCL–Foxconn OSAT unit signals tangible progress from policy to execution and reinforces India’s growing stature in the global semiconductor landscape.