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In a significant boost to India’s ambitions to establish itself as a semiconductor manufacturing hub, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a new semiconductor facility near Jewar in Uttar Pradesh. The plant will be developed as a joint venture between Indian IT major HCL and Taiwanese electronics giant Foxconn.
This will be the sixth semiconductor unit approved under the India Semiconductor Mission, with five others already in advanced stages of construction. The upcoming facility will be housed in the Yamuna Expressway Industrial Development Authority (YEIDA) region, close to the site of the upcoming Noida International Airport at Jewar.
The new facility will focus on the production of display driver chips—an essential component used in devices such as smartphones, laptops, personal computers, automobiles, and other consumer electronics. Designed for a production capacity of 20,000 wafers per month, the facility aims to output 36 million units monthly, significantly bolstering India’s semiconductor capabilities.
The project involves an investment of Rs 3,700 crore and marks an important milestone in India’s efforts to achieve self-reliance in the strategically vital semiconductor sector.
Semiconductor ecosystem expanding nationwide
The Centre’s announcement also highlights the broader momentum behind India’s chip ecosystem. World-class design facilities are taking shape across several states, with state governments actively courting design and fabrication firms.
According to government data, students and entrepreneurs in 270 academic institutions and 70 startups are currently working on advanced chip design technologies for developing new products.
Notably, 20 products developed by students have already been “taped out”—the stage before physical chip manufacturing—at SCL Mohali.
Global suppliers gear up
As India’s semiconductor landscape expands, major global equipment and material suppliers have begun ramping up their presence in the country. Leading equipment makers such as Applied Materials and Lam Research now have operations in India, while gas and chemical suppliers, including Merck, Linde, Air Liquide, and Inox, are preparing to scale alongside the sector’s growth.
The increasing demand for semiconductors—driven by domestic production in mobile phones, laptops, servers, medical devices, power electronics, defence systems, and consumer electronics—has made India one of the most closely watched emerging markets in global chip supply chains.
The Cabinet’s latest approval aligns with the government’s wider push for an “Atmanirbhar Bharat,” or self-reliant India, by reducing dependence on imported semiconductors and building end-to-end capabilities at home.
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