Cabinet approves 6th semiconductor unit in Uttar Pradesh under India Semiconductor Mission

New Delhi: In a significant push towards building a self-reliant semiconductor ecosystem, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of a new semiconductor manufacturing unit in Uttar Pradesh under the India Semiconductor Mission.

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The upcoming unit, a joint venture between Indian IT giant HCL and global electronics manufacturing leader Foxconn, will be set up near Jewar Airport within the Yamuna Expressway Industrial Development Authority (YEIDA) region. With this approval, the total number of semiconductor units under construction in India rises to six, as the country accelerates its strategic journey towards becoming a global hub for semiconductor manufacturing.

The new facility will focus on the production of display driver chips—crucial components used in mobile phones, laptops, personal computers, automobiles, and a wide range of other electronic devices with display functionalities. The plant is designed to handle a capacity of 20,000 wafers per month and is expected to produce up to 36 million chips monthly at full operational scale.

The project entails an investment of Rs 3,700 crore and marks a strategic collaboration between two industrial powerhouses. HCL brings to the table decades of experience in hardware development, while Foxconn contributes its global expertise in large-scale electronics manufacturing.

The approval of this unit reflects the continued momentum of India’s Semiconductor Mission, which aims to strengthen the country’s electronics manufacturing capabilities and reduce dependency on imports. The initiative has already seen significant progress, with five semiconductor units in advanced stages of construction and a growing number of global and domestic players participating in the ecosystem.

India is also witnessing a parallel rise in semiconductor design capabilities, with world-class facilities being developed across several states. Over 270 academic institutions and 70 startups are currently engaged in advanced chip design work. Notably, 20 products developed by students from these institutions have already been taped out by the Semiconductor Laboratory (SCL) in Mohali.

The country’s growing semiconductor ecosystem is also attracting key global suppliers and equipment manufacturers. Applied Materials and Lam Research have set up operations in India, while major gas and chemical suppliers such as Merck, Linde, Air Liquide, and Inox are expanding their capabilities to support the sector.

With the surging demand for semiconductors across industries—including mobile devices, servers, medical equipment, defence systems, power electronics, and consumer electronics—the new unit is poised to play a crucial role in fulfilling Prime Minister Narendra Modi’s vision of an Atmanirbhar Bharat (self-reliant India).

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