In a significant stride towards strengthening India's semiconductor manufacturing capabilities, the Union Cabinet has approved a ₹3,706 crore semiconductor unit to be established in Jewar, Uttar Pradesh. This project is a joint venture between HCL Group and Foxconn, the Taiwanese electronics giant, and marks the sixth semiconductor unit approved under the India Semiconductor Mission.
The strategic location of the new facility near the upcoming Noida International Airport at Jewar in the Yamuna Expressway Industrial Development Authority (YEIDA) region, is expected to bolster domestic chip-making capabilities and reduce dependence on imports. The plant will focus on manufacturing display driver chips, which are essential components in various devices such as mobile phones, laptops, automobiles, personal computers, and other display-equipped products.
With a planned capacity of 20,000 wafers per month, the unit is projected to produce 36 million chips monthly. This substantial output is aimed at meeting the growing demand for semiconductors, fueled by the increasing manufacturing of electronics across various sectors. The establishment of this unit is also expected to generate employment opportunities for approximately 2,000 people.
The government has emphasized the strategic importance of developing a self-reliant semiconductor industry in India. The approved project aligns with the India Semiconductor Mission, launched in 2022, to promote the growth of this vital sector. With five other semiconductor facilities already in advanced stages of construction, the addition of this sixth unit signifies the country's progress in establishing a robust semiconductor ecosystem.
The HCL-Foxconn joint venture brings together the expertise of HCL in hardware development and manufacturing with Foxconn's global leadership in electronics manufacturing. This collaboration is expected to facilitate the adoption of advanced technologies in the production of display driver chips.
The government has also noted the increasing interest and investment from global players in India's semiconductor sector. Equipment manufacturers like Applied Materials and Lam Research have already established a presence in India, while key suppliers of gases and chemicals, including Merck, Linde, Air Liquide, and Inox, are expanding their operations to support the industry's growth. Furthermore, design facilities are emerging across various states, with students and startups actively involved in developing innovative products using cutting-edge technologies.
