NEW DELHI: The Union Cabinet on Wednesday approved the establishment of India's sixth
semiconductor manufacturing unit under the
India Semiconductor Mission. Production will start from 2027.
This new unit will be located in Jewar, Uttar Pradesh, and is a joint venture between
HCL Group and
Foxconn with an investment of approximately ₹3,706 crore. HCL has a long history of developing and manufacturing hardware. Foxconn is a global major in electronics manufacturing. Together they will set up a plant near Jewar airport in Yamuna Expressway Industrial Development Authority or YEIDA.
This will be first chip unit in Uttar Pradesh, said Union minister Ashwini Vaishnaw.
This plant will manufacture display driver chips for mobile phones, laptops, automobiles, PCs, and myriad of other devices that have display.
It is expected to create around 2,000 jobs.
The plant is designed for 20,000 wafers per month. The design output capacity is 36 million units per month.
Shortly after the announcement, Uttar Pradesh CM Yogi Adityanath tweeted: "Under the leadership of PM Modi, the Union Cabinet has approved the establishment of a semiconductor unit in Uttar Pradesh's Yamuna Authority region (YEIDA) - a historic step towards 'Atmanirbhar Bharat'.
With an investment of Rs 3,700 crore, the unit will manufacture display driver chips for mobile phones, laptops, automobiles and various other devices.India is now moving towards global leadership in semiconductor manufacturing and UP is emerging as a hub for high-end electronics and semiconductor production."
Why its significant
The development forms part of a broader strategy to boost India’s
semiconductor ecosystem, which includes design, fabrication, assembly, testing, marking, packaging, and supply chains for equipment, chemicals, and gases.
Union Minister Ashwini Vaishnaw highlighted the importance of this project as a critical step towards building a pan-India semiconductor ecosystem that leverages the country's talent pool.
The other five semiconductors are under construction in Gujarat and Assam.
"Already five semiconductor units are in advanced stages of construction. With this sixth unit, Bharat moves forward in its journey to develop the strategically vital semiconductor industry," the government said.
The works on other five units are currently underway, and of them is expected to be inaugurated later this year, Union Minister Ashwini Vaishnaw told reporters after the Caninet meeting, chaired by Prime Minister Narendra Modi.