UP allots land near Jewar airport for Foxconn-HCL semiconductor JV: Report

The Taiwan-based chipmaker, who has 40 percent stake in the joint venture and is likely to invest $37.2 million, has allowed the Indian IT services firm to pick the location for the unit, the report said.

The government of Uttar Pradesh has provided 30 acres of land near the upcoming Jewar airport in Noida for HCL Group and Foxconn’s joint venture to develop a semiconductor outsourced assembly and testing unit, The Economic Times reported on September 13.

This could be the first such project in the state if it receives green signal from the Centre, the report said, citing sources.

The Taiwan-based chipmaker, who has 40 percent stake in the joint venture and is likely to invest $37.2 million, has allowed the Indian IT services firm to pick the location for the unit, the report said.

Moneycontrol could not independently verify the report.

The chip packaging and testing venture, known as OSAT in industry lingo, happened after Foxconn abandoned a joint venture with India’s Vedanta in July last year.

On September 11, Union Minister for Electronics and IT Ashwini Vaishnaw said Uttar Pradesh will join Gujarat and Assam in hosting chip units. He was at a press briefing at Semicon India 2024.

Chief Minister Yogi Adityanath added that the state is prepared to offer a capital subsidy of up to 25 percent to firms establishing semiconductor fabs in Uttar Pradesh. This state subsidy, combined with the central government's 50 percent capex support, could provide semiconductor units in Uttar Pradesh with up to 75 percent in total capital subsidies.