India Chip begins work on factory in Noida, aims to process 20,000 wafers per month upon commissioning
HCL Group has partnered with Foxconn to set up India Chip in Noida. The facility plans to process 20,000 wafers per month, make display driver chips for smartphones, TVs and laptops and meet a large portion of India’s growing demand for semiconductors.
India Chip, a joint venture between HCL Group and Foxconn, has started construction of its factory in Noida. The factory, the foundation stone of which was laid by PM Narendra Modi a few days ago, will assemble, package and test display driver chips that power screens in smartphones, TVs, laptops and other electronic devices.
The plant, to be set 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.
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India Chip is structured as a 60:40 joint venture between HCL Group and Foxconn. Beyond processing the wafers, the OSAT plant will assemble and test semiconductors, a critical step that ensures the chips meet performance and reliability standards before they are integrated into consumer electronics. The company says the facility can meet about 25 percent of India’s domestic demand for display driver chips, a category that is currently entirely imported, while also exporting 20-30 percent of production to global markets.
The foundation stone of the project was laid by Prime Minister Narendra Modi, who joined the ceremony virtually along with Uttar Pradesh Chief Minister Yogi Adityanath and Union IT Minister Ashwini Vaishnav.
Pay attention to display chips
As India’s electronics manufacturing grows, especially in mobile phones and consumer electronics, demand for screen components has increased. Currently, manufacturers are completely dependent on imports for display driver integrated circuits. By localizing this segment, India Chip aims to bridge a significant gap in the value chain and reduce external dependence.
The company expects the project to create over 3,500 direct and indirect jobs, as well as spur the development of the local semiconductor ecosystem including suppliers, logistics partners and supporting units.
With construction now underway and operations targeted for 2028, the Noida facility is being seen as one of India’s foundational projects to build a flexible, domestic semiconductor supply chain and move beyond electronics assembly toward high-value chip manufacturing.
