India Expands Chip Manufacturing with HCL-Foxconn and Tata Projects

On May 14, the Union Cabinet has approved a  $444 million investment for a new Outsourced Semiconductor Assembly and Test (OSAT) facility in Uttar Pradesh that will be built through a strategic joint venture between HCL and Foxconn, two industry giants aiming to enhance India’s position in the high-tech manufacturing space. 

The HCL-Foxconn OSAT plant is set to produce up to 36 million display driver chips per month, serving a wide range of devices from smartphones to consumer electronics, marking a critical step in India’s broader goal of semiconductor self-reliance and will help reduce its dependency on global chip supply chains. 

Meanwhile, Tata Semiconductor Assembly and Test Pvt. Ltd. (TSAT) is spearheading another milestone project — India’s first indigenous semiconductor assembly and test facility in Jagiroad, Assam. Backed by the India Semiconductor Mission, that is slated to be operational by mid-2025, positioning the North-East region as a new industrial growth corridor. 

With strategic investments in regions like Uttar Pradesh and Assam, the country is laying the groundwork for a more resilient, future-ready electronics ecosystem.