The Union Cabinet has given the green light to a major semiconductor manufacturing facility to be jointly developed by HCL and Foxconn under the India Semiconductor Mission. This initiative marks a significant step in India’s push toward self-reliance in the semiconductor sector, as it becomes the sixth such project in the country to reach advanced stages of development.
The upcoming plant will be strategically located in the Yamuna Expressway Industrial Development Authority (YEIDA) region, near the under-construction Jewar airport in Uttar Pradesh. This state-of-the-art facility is expected to specialize in the production of display driver chips, which are essential components in a wide range of electronics, including smartphones, laptops, personal computers, automobiles, and other display-based devices.
The plant is designed to process 20,000 wafers per month, with a projected monthly output of 36 million chips. The project represents a significant investment of ₹3,700 crore and is anticipated to boost both local manufacturing and employment.
“In addition to five semiconductor units already progressing well, this sixth unit is a major milestone in India’s journey to build a resilient and strategically vital semiconductor ecosystem,” the government stated.
India’s semiconductor industry has been gaining momentum, with several states setting up design infrastructure to support the sector. Encouragement from state governments has led to increased participation from design firms and startups. Over 270 educational institutions and 70 startups are now engaged in developing next-generation semiconductor technologies, with 20 student-led products already taped out at the Semiconductor Laboratory (SCL) in Mohali.
Global technology leaders, including Applied Materials and Lam Research, have established operations in India, enhancing the domestic infrastructure for semiconductor manufacturing. In parallel, major suppliers of chemicals and industrial gases — such as Merck, Linde, Air Liquide, and Inox — are preparing to scale up production to meet the rising demand.
With applications spanning from consumer electronics and medical equipment to defence and industrial automation, the demand for semiconductors in India is surging. The new HCL-Foxconn facility is expected to be a critical contributor to this sectoral growth and aligns with Prime Minister Narendra Modi’s vision of Atmanirbhar Bharat (self-reliant India).
