Union Cabinet Approves Establishment of Sixth Semiconductor Manufacturing Facility in Uttar Pradesh!

The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has approved the establishment of a new semiconductor manufacturing facility in Uttar Pradesh, marking a significant step in India’s semiconductor self-reliance journey. This project is part of the India Semiconductor Mission, which aims to position India as a global leader in semiconductor manufacturing and innovation.

The facility will be developed as a joint venture between HCL, one of India’s leading IT companies, and Foxconn, a global leader in electronics manufacturing. It will be located near Jewar Airport, in the Yamuna Expressway Industrial Development Authority (YEIDA) region. This strategic location is expected to enhance connectivity and contribute to regional industrial growth.

The new plant will focus on the production of display driver chips, crucial components for a wide range of devices such as smartphones, laptops, personal computers, automobiles, and various other consumer and industrial electronics. These chips play an essential role in enabling high-quality displays, and with increasing demand for such devices, the facility aims to address the growing need for locally manufactured semiconductors.

The facility will have an estimated production capacity of 20,000 wafers per month, with the potential to manufacture up to 36 million chips monthly. The total investment for this project is estimated at ₹3,700 crore. This investment will not only bolster India’s semiconductor manufacturing capabilities but also contribute to the Atmanirbhar Bharat initiative by reducing dependency on global semiconductor imports and fostering domestic innovation.

India’s semiconductor sector is seeing significant advancements. With five fabrication units already under construction, the sector is steadily growing. Several states have emerged as important hubs for semiconductor design and innovation, supported by the involvement of over 270 academic institutions and 70 startups. This expanding ecosystem is expected to drive the development of advanced semiconductor technologies and fuel India’s technological ambitions.

Alongside the development of manufacturing facilities, leading global suppliers of semiconductor equipment and materials, including Applied Materials, Lam Research, Merck, Linde, Air Liquide, and Inox, have expanded their operations in India. This expansion is instrumental in supporting the rising domestic demand for semiconductors across various sectors, including consumer electronics, automotive systems, defence technology, medical devices, and data infrastructure.

The new facility is expected to play a pivotal role in enhancing domestic chip production capacity, further strengthening India’s semiconductor supply chain resilience and ensuring self-sufficiency in the long term.

The approval of this new semiconductor manufacturing facility in Uttar Pradesh is a key milestone in India’s goal of becoming a self-reliant hub for semiconductor production. With HCL and Foxconn at the helm, the facility is set to not only meet the growing domestic demand but also position India as a significant player in the global semiconductor market. This initiative is a critical part of the India Semiconductor Mission and will contribute to the country’s vision of technological self-reliance and sustainable economic growth.