The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has approved the setting up of a new semiconductor manufacturing facility in Uttar Pradesh. This initiative forms part of the ongoing India Semiconductor Mission and represents the sixth approved semiconductor unit nationwide. The project aims to enhance India’s role within the global semiconductor manufacturing landscape.
The facility will be developed through a joint venture between HCL and the international electronics manufacturing company Foxconn. It will be located near Jewar Airport, within the Yamuna Expressway Industrial Development Authority (YEIDA) region. The plant will focus on the production of display driver chips, which are essential components in devices such as smartphones, laptops, personal computers, automobiles, and other consumer and industrial electronic products.
The facility is planned with a production capacity of 20,000 wafers per month, targeting the manufacture of up to 36 million chips monthly. The total investment in the project is estimated at ₹3,700 crore. This development is expected to contribute significantly to regional industrial growth and to the broader national objective of achieving technological self-reliance, in alignment with the Atmanirbhar Bharat vision.
India’s semiconductor sector is witnessing consistent advancement. Five fabrication units are currently under construction, and several states are emerging as important centres for semiconductor design and innovation. Academic institutions and startups are increasingly active in the sector, with over 270 academic institutions and 70 startups involved in the development of advanced semiconductor technologies.
In parallel with this growth, leading global suppliers of semiconductor equipment and materials—such as Applied Materials, Lam Research, Merck, Linde, Air Liquide, and Inox—have expanded operations in India. This expansion supports rising domestic demand across multiple sectors, including consumer electronics, automotive systems, defence technology, medical devices, and data infrastructure. The newly sanctioned facility is expected to play a pivotal role in enhancing domestic chip production capacity and in strengthening India’s semiconductor supply chain resilience.
