India Chip, a joint venture between HCL Group and Foxconn, has started building its factory in Noida. The factory, which saw its foundation stone laid down by PM Narendra Modi a few days ago, will assemble, package and test display driver chips which power screens in smartphones, TVs, laptops and other electronic devices.
The plant, coming up near Jewar on the Yamuna Expressway, will be an advanced Outsourced Semiconductor Assembly and Test (OSAT) unit designed to process up to 20,000 wafers per month when fully operational in 2028. Built as a joint venture between HCL and Foxconn and backed by an investment of Rs 3,700 crore, the facility will manufacture display driver chips — key components that power screens in smartphones, televisions, laptops and other digital devices.
India Chip is structured as a 60:40 joint venture between HCL Group and Foxconn. Beyond processing wafers, the OSAT plant will assemble and test semiconductors, a critical stage that ensures chips meet performance and reliability standards before being integrated into consumer electronics. The company says the facility could meet nearly 25 per cent of India’s domestic demand for display driver chips, a category that is currently fully imported, while also exporting 20–30 per cent of production to global markets.
The foundation stone for the project was laid by Prime Minister Narendra Modi, who joined the ceremony virtually, alongside Uttar Pradesh Chief Minister Yogi Adityanath and Union IT Minister Ashwini Vaishnaw.
Focus on Display Chips
As India’s electronics manufacturing scales up, especially in mobile phones and consumer electronics, demand for screen components has surged. At present, manufacturers rely entirely on imports for display driver integrated circuits. By localising this segment, India Chip aims to plug a key gap in the value chain and reduce external dependencies.
The company expects the project to create over 3,500 direct and indirect jobs, while also encouraging the development of a local semiconductor ecosystem, including suppliers, logistics partners and ancillary units.
With construction now underway and operations targeted for 2028, the Noida facility is being seen as one of the foundational projects in India’s bid to build a resilient, homegrown semiconductor supply chain, and to move beyond electronics assembly towards higher-value chip manufacturing.
