The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of a new semiconductor manufacturing unit in Uttar Pradesh, further advancing the India Semiconductor Mission. This marks the sixth such unit in the country and a significant step toward strengthening India's presence in the global semFoxconniconductor ecosystem.
The new facility will be set up as a joint venture between HCL and global electronics manufacturing giant . Located near Jewar Airport within the Yamuna Expressway Industrial Development Authority (YEIDA) region, the plant will specialize in the production of display driver chips. These components are integral to a wide range of devices including mobile phones, laptops, PCs, automobiles, and various other consumer and industrial electronics.
Designed for a production capacity of 20,000 wafers per month, the facility aims to manufacture up to 36 million chips monthly. The project is expected to draw an investment of ₹3,700 crore, contributing both to regional development and to India's broader goal of technological self-reliance under the Atmanirbhar Bharat initiative.
The decision comes amid consistent progress in India's semiconductor sector. Five fabrication units are currently in advanced stages of construction, while several states are emerging as hubs for semiconductor design and innovation. The country has also seen significant growth in academic and entrepreneurial participation in the field, with students and startups from over 270 academic institutions and 70 startups actively engaged in developing advanced semiconductor designs.
In a promising sign of ecosystem development, major global equipment and material suppliers—including Applied Materials, Lam Research, Merck, Linde, Air Liquide, and Inox—have expanded their footprint in India. This aligns with the growing domestic demand for semiconductors across industries such as consumer electronics, medical devices, automotive electronics, defence equipment, and data infrastructure.
The newly approved unit is expected to not only enhance chip manufacturing capabilities but also support the creation of a resilient semiconductor supply chain in India.