Introduction
HCL Technologies’ stock surged by 2% after the Indian government approved a significant ₹3,706 crore investment for a new semiconductor plant in Jewar, Uttar Pradesh.
This approval marks a milestone in India’s semiconductor ambitions, with HCL joining forces with Foxconn in a joint venture that will reshape the country’s tech manufacturing landscape.
The new facility, expected to enhance India’s chip production capacity, promises not only to fuel economic growth but also to boost HCL’s market presence in the global tech race.
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Brief Overview: Key Highlights
Cabinet Approval: The Indian government has sanctioned ₹3,706 crore for a new semiconductor unit in Jewar, Uttar Pradesh.
HCL Technologies Impact: Shares rose by 2% after the announcement, closing at ₹1,637.75, up from the previous ₹1,620.45.
Joint Venture with Foxconn: The unit will be built under the partnership between HCL and Foxconn, marking a significant milestone in India’s tech manufacturing.
Production Capacity: The facility will manufacture display driver chips with a capacity of 20,000 wafers and 36 million chips per month.
Job Creation: The plant is expected to generate around 2,000 jobs, boosting local employment.
Cabinet Outlay: A Major Boost to Semiconductor Manufacturing
The Indian government’s recent decision marks a crucial step in enhancing the country’s semiconductor manufacturing capacity. The ₹3,706 crore project, part of the India Semiconductor Mission, will be led by HCL Technologies and Foxconn.
This joint venture aims to reduce India’s reliance on imported semiconductor components. The plant will focus on display driver chips for phones, laptops, and automobiles.
It will produce 20,000 wafers per month, equating to around 36 million chips. The project will boost India’s semiconductor manufacturing capacity.
It will also create significant job opportunities for the local workforce.
techovedas.com/₹3706-crore-uttar-pradesh-greenlights-semiconductor-project-by-hcl-tech-and-foxconn/
Market Reaction: HCL Shares on the Rise
The news triggered positive sentiment among investors, leading to a 2% rise in HCL Technologies’ share price.
The company’s shares closed at ₹1,637.75, marking a 1.07% increase from the previous day’s closing price of ₹1,620.45.
The market capitalization of HCL Technologies currently stands at ₹4.45 lakh crore. Analysts attribute the surge in stock value to the promising growth prospects brought about by the new semiconductor project.
techovedas.com/indian-semiconductor-startup-series-radiant-semiconductors
Financial Performance: Strong Growth Indicators
HCL Technologies reported robust financial performance for Q4 FY25, showcasing a 6% increase in revenue from ₹28,499 crore in Q4 FY24 to ₹30,246 crore. The net profit also climbed by 8% to ₹4,309 crore from the previous ₹3,995 crore.
The company projects a steady revenue growth of 2–5% in constant currency terms for FY26, with an expected EBIT margin of 18.0-19.0%. This cautious yet positive outlook reflects HCL’s strategic focus on sustainable growth.
| Financial Metrics | Q4 FY24 | Q4 FY25 | YoY Change |
|---|---|---|---|
| Revenue | ₹28,499 Cr | ₹30,246 Cr | +6% |
| Net Profit | ₹3,995 Cr | ₹4,309 Cr | +8% |
| EBIT Margin | 18.0-19.0% | 18.0-19.0% | – |
| IT & Business Services Revenue | 73.3% | 73.3% | +2.7% |
| HCLSoftware Revenue Growth | +4.9% YoY | -12.9% QoQ | – |
Strategic Outlook: Strengthening India’s Semiconductor Ecosystem
The government’s approval of the semiconductor unit at Jewar reflects a strategic move to make India self-reliant in semiconductor production.
By partnering with Foxconn, HCL Technologies aims to leverage Foxconn’s global expertise in chip manufacturing, thereby positioning India as a competitive player in the global semiconductor supply chain.
The facility will not only support local manufacturing but also contribute to India’s vision of becoming a global hub for electronics and semiconductor production.
Industry experts believe that this venture could significantly reduce the country’s dependency on chip imports while fostering job creation and economic development.
techovedas.com/from-44-to-14-global-semiconductor-production-shifted-from-u-s-to-asia-1990-2032f
Conclusion
With the cabinet’s approval, HCL Technologies is set to shape India’s semiconductor landscape.
The new plant will be a game-changer for the tech sector. Investors reacted positively, pushing HCL’s stock up by 2%.
The project is expected to drive economic growth in Uttar Pradesh. It could also boost India’s standing in the global semiconductor market.
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