In a landmark decision aimed at boosting India’s semiconductor self-reliance, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of a semiconductor manufacturing unit in Uttar Pradesh’s YEIDA region, near the upcoming Jewar Airport.
The project will be executed as a joint venture between Indian tech major HCL and global electronics manufacturing leader Foxconn, under the India Semiconductor Mission. This brings the total number of semiconductor units under construction in the country to six, as India positions itself as a future global hub for chip manufacturing.
The approved facility will specialize in display driver chips, essential for devices like smartphones, laptops, PCs, automobiles, and other display-based electronics. With a planned capacity of 20,000 wafers per month, the unit is expected to roll out up to 36 million chips monthly at peak scale.
The ₹3,700 crore investment represents a fusion of HCL’s deep hardware expertise and Foxconn’s global strength in electronics production. The strategic location within the Yamuna Expressway Industrial Development Authority is expected to catalyze industrial activity and job creation in the region.
This development aligns with the broader goals of the India Semiconductor Mission, which has already seen five chip fabrication units reach advanced stages of construction. Simultaneously, India is expanding its chip design footprint, with over 270 academic institutions and 70 startups actively engaged in semiconductor innovation. As a result, 20 chip products designed by Indian students have been successfully taped out at the Semiconductor Laboratory (SCL) in Mohali.
The ecosystem continues to attract global suppliers, with companies like Applied Materials, Lam Research, Merck, Linde, Air Liquide, and Inox scaling up operations to support India’s semiconductor ambitions.
