Centre Clears INR 3,706 Crore Semiconductor Plant in UP, HCL-Foxconn JV Gets the Nod

Entrepreneur

15-05-2025

Ashwini Vaishnaw emphasized the importance of the new unit. He said the facility would be capable of handling 20,000 wafers per month, translating to an output capacity of 36 million chips per month
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In a major push toward building a self-reliant semiconductor ecosystem, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a INR 3,706 crore semiconductor manufacturing plant to be set up in Jewar, Uttar Pradesh. The project, a joint venture between Indian tech pioneer HCL and global electronics giant Foxconn, will be established near the upcoming Jewar airport under the Yamuna Expressway Industrial Development Authority (YEIDA).
This sixth unit, sanctioned under the India Semiconductor Mission, marks another milestone in the country's efforts to strengthen its position in the strategically vital semiconductor industry. According to the official release from PIB, five other semiconductor units are already in advanced stages of construction. The latest plant will focus on manufacturing display driver chips, essential components in mobile phones, laptops, automobiles, PCs, and a wide range of other digital devices.
Information and Broadcasting Minister Ashwini Vaishnaw, speaking on the development, emphasized the importance of the new unit. He said the facility would be capable of handling 20,000 wafers per month, translating to an output capacity of 36 million chips per month. "This will help meet the rising demand in sectors like smartphones, automotive electronics, and consumer devices," he noted.
The joint venture brings together two powerful players: HCL, which has decades of experience in hardware manufacturing, and Foxconn, known worldwide for its electronics production capabilities. Their combined expertise is expected to significantly bolster India's domestic chip manufacturing capacity.
Prime Minister Narendra Modi hailed the cabinet decision on X, saying, "India's strides in the world of semiconductors continue! Today's Cabinet decision regarding the establishment of a semiconductor unit in Uttar Pradesh will boost growth and innovation. It will create innumerable opportunities for the youth as well."
The move comes at a time when India's ecosystem is maturing; Applied Materials and Lam Research, two of the world's leading semiconductor equipment manufacturers, now operate in the country. Key chemical and gas suppliers such as Merck, Linde, Air Liquide, and Inox are also scaling up their presence to support this growing industry.
Beyond infrastructure, India is nurturing a new generation of semiconductor talent. As per PIB, students and entrepreneurs across 270 academic institutions and 70 startups are actively working on cutting-edge chip design technologies. Twenty products developed by these students have already been taped out at SCL Mohali, showcasing the potential of India's emerging chip design community.