New Delhi, May 14 -- India's display manufacturing industry received a boost on Wednesday when the Union cabinet approved the India Semiconductor Mission's (ISM) fourth chip-testing facility and the fifth semiconductor project overall.

The Rs.3,700-crore ($433 million) project, first floated in January 2024, is an outsourced semiconductor assembly and testing (Osat) facility being developed by IT services firm HCL Technologies Ltd in partnership with Taiwanese contract manufacturer Hon Hai Precision Industry Co. Ltd, better known as Foxconn.

However, the HCL-Foxconn joint venture is the first "advanced manufacturing Osat" in the country, catering specifically to displays, making it the first chip-testing project of its kind. It will hel...