Tech Giants Foxconn and HCL to Establish UP's First Semiconductor Factory

Tech giants Foxconn and HCL are set to establish Uttar Pradesh's first semiconductor factory, marking a significant step in India's semiconductor manufacturing capabilities. 
 
This partnership aims to bolster local production and innovation in the semiconductor sector, aligning with the country's broader goals of enhancing self-reliance in technology and fostering economic growth. The factory is expected to create jobs and attract further investments in the region, contributing to the development of a robust tech ecosystem in Uttar Pradesh.
 
A joint venture between Taiwan's Foxconn and the HCL Group has secured around 30 acres of land near the upcoming Jewar airport in Noida, Uttar Pradesh. The land, allocated by the Yamuna Expressway Industrial Development Authority (YEIDA), is designated for the establishment of a semiconductor outsourced assembly and testing (OSAT) unit. 
 
This project could mark a significant milestone for the state, as it would be the first OSAT unit in Uttar Pradesh, pending approval from the central government.
Foxconn is set to invest approximately $37.2 million in the joint venture, holding a 40% equity stake, while leaving the decision on the unit's location to HCL Group, the majority partner. 
 
HCL favors Uttar Pradesh, citing its proximity to its headquarters in Noida as a strategic advantage. According to a source, HCL believes its established presence in the state will facilitate smoother operations.
 
Foxconn's operations in India have expanded significantly, reaching over $10 billion as of 2024. The company has already invested $1.4 billion in the country and continues to grow its footprint in the Indian market.
 
Foxconn currently employs around 48,000 people in India, with a strong emphasis on promoting women in the workforce. The company has established a facility in Tamil Nadu through the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) to accommodate over 18,000 women employees. This facility spans 20 acres, cost approximately Rs 706 crore, and operates on a room-sharing basis. Notably, it is one of the largest employers of women in India, with a workforce comprising 70% women and 30% men.
 
In addition to its semiconductor and electronics manufacturing ventures, Foxconn is venturing into the Battery Energy Storage System (BESS) business, particularly within the electric vehicle (EV) sector. Chairman Young Liu has confirmed that plans are underway to set up a BESS unit in India, building on the success of their first plant in Taiwan.