Cabinet Approves Rs 3,706 Crore Semiconductor Unit In Jewar, UP By HCL-Foxconn

SOURCE : NEW18 NEWS

Last Updated:May 14, 2025, 20:05 IST

The Union Cabinet on Wednesday approved a new semiconductor unit under the India Semiconductor Mission

The Union Cabinet on Wednesday approved the establishment of India’s sixth semiconductor unit, a Rs 3,706 crore project to be set up in Jewar, Uttar Pradesh. The plant will be developed through a joint venture between HCL and Foxconn.

The facility will focus on manufacturing display driver chips—crucial components used in mobile phones, laptops, personal computers, automobiles, and a wide range of other devices with display screens.

Engineered for high-capacity output, the plant is designed to handle 20,000 wafers per month and produce up to 36 million chips monthly, significantly contributing to India’s growing semiconductor manufacturing ecosystem.

The project is expected to generate employment for 2,000 people, contributing to the growing momentum of India’s electronics manufacturing ecosystem. It joins five other semiconductor units currently under construction in India, all of which are progressing rapidly.

Appreciating the achievement, Prime Minister Narendra Modi said, “India’s strides in the world of semiconductors continue! Today’s Cabinet decision regarding the establishment of a semiconductor unit in Uttar Pradesh will boost growth and innovation. It will create innumerable opportunities for the youth as well.”

The facility will be located in Uttar Pradesh, leveraging the state’s growing electronics clusters near Noida and Greater Noida. The project is expected to generate over 10,000 direct and indirect jobs, tapping into the region’s abundant talent pool and promoting Tier-II city economic development.

HCL-Foxconn Joint Venture in Uttar Pradesh

The collaboration brings together Foxconn’s advanced manufacturing expertise, as a leading supplier for Apple, and HCL’s strengths in chip design, software integration, and systems engineering. The result: a full-stack capability for India, spanning design, fabrication, and testing.

The joint venture will also focus on technology transfer and workforce skilling, preparing Indian engineers and technicians for next-gen semiconductor roles.

The facility is a critical enabler of India’s “Atmanirbhar Bharat” (self-reliant India) mission in strategic technologies. Locally-produced chips will serve key sectors such as defense, telecom, space, and critical digital infrastructure, reducing dependence on potentially vulnerable foreign supply chains.

The move signals India’s readiness to play a central role in the global high-tech supply chain, especially as companies look to de-risk from overdependence on China. The JV sends a strong message to global investors that India is open for high-tech business, with political will, policy support, and talent to match.

The semiconductor plant will catalyze innovation and growth in multiple downstream industries, including:

• Electric Vehicles (EVs)
• 5G and next-gen telecom
• Consumer electronics
• Medical devices, AI hardware, and IoT ecosystems
• It also encourages the growth of chip packaging, testing, and fabless design companies—laying the foundation for a complete semiconductor value chain.

About India Semiconductor Mission

Launched in 2022, the India Semiconductor Mission is not just building semiconductor fabrication plants but also nurturing talent. Over 270 academic institutions and 70 startups are now working with the latest semiconductor tools and technologies to build a skilled workforce.

The broader semiconductor ecosystem is also taking shape. Global and domestic players such as Applied Materials, Lam Research, Merck, Linde, Air Liquide, and Inox are expanding their footprint in India. From chemicals and gases to chipmaking equipment, critical components of the supply chain are aligning to support India’s semiconductor ambitions.

First Published:

May 14, 2025, 15:21 IST