Cabinet Approves ₹3,700 Cr Semiconductor Unit for YEIDA Region

India took another decisive step toward self-reliance in the semiconductor sector with the Union Cabinet, chaired by Prime Minister Shri Narendra Modi, approving the establishment of a sixth semiconductor unit. This announcement marks a critical milestone in India’s expanding semiconductor ecosystem, supporting the vision of Atmanirbhar Bharat.

A Strategic Joint Venture: HCL and Foxconn Join Forces

The newly approved semiconductor fabrication unit will be a joint venture between two industrial giants—HCL and Foxconn. HCL, known for its deep expertise in IT hardware development and services, is joining hands with Foxconn, the Taiwan-headquartered global leader in electronics manufacturing. This partnership promises to bring technological excellence, manufacturing expertise, and global best practices into India’s semiconductor mission.

The plant will be established near the Jewar International Airport, located in the Yamuna Expressway Industrial Development Authority (YEIDA) region in Uttar Pradesh. The choice of location is strategic—offering proximity to Delhi NCR, international connectivity, and infrastructure support.

Focus on Display Driver Chips for Digital Devices

The unit will focus on producing display driver chips, which are crucial semiconductor components for a wide array of electronic devices. These include smartphones, laptops, tablets, personal computers, automotive display systems, and other digital gadgets that require screen interfaces.

The approved facility will have a capacity of processing 20,000 semiconductor wafers per month, leading to an output of 36 million units monthly. This scale of production will significantly reduce dependency on imports and help meet the surging domestic and global demand for display technologies.

Investment of ₹3,700 Crore and Economic Multiplier Effect

The new unit will attract an investment of ₹3,700 crore, creating a ripple effect across associated industries. With upstream suppliers like gas and chemical manufacturers including Merck, Linde, Inox, Air Liquide, and others expanding their Indian footprint, the domestic supply chain for chipmaking is being rapidly fortified.

Nationwide Semiconductor Momentum Gains Speed

This sixth facility is part of a broader initiative where five other semiconductor plants are already in advanced stages of construction across various states. These efforts are driven by the India Semiconductor Mission (ISM), launched to catalyze the growth of domestic chip manufacturing capabilities.

States across the country are vying to become semiconductor design and fabrication hubs, rolling out incentives, infrastructure, and partnerships with academic institutions and industry players. Design facilities of international caliber have already been established in several regions.

Skilling, Startups, and Innovation: India’s Design Talent on the Rise

The ecosystem’s success hinges not just on infrastructure and capital, but also on innovation and human resource development. Currently, over 270 academic institutions and 70 startups are actively engaged in research and development of semiconductor design technologies.

One of the notable achievements of this collaborative ecosystem is the successful tape-out—a stage signifying final design approval for chip production—of 20 chip designs developed by students, facilitated by the Semiconductor Laboratory (SCL) in Mohali. These initiatives are grooming a new generation of semiconductor engineers and entrepreneurs.

Equipment and Process Ecosystem Taking Shape

India’s semiconductor push has also attracted global equipment and process companies. Applied Materials and Lam Research, two of the world’s leading semiconductor equipment providers, have established operations in India. Their presence not only supports chip manufacturing but also signals growing global confidence in India’s semiconductor vision.

Driving Demand: India’s Expanding Electronics Market

India’s domestic demand for semiconductors continues to surge, driven by sectors like mobile phones, laptops, servers, electric vehicles, medical devices, power electronics, and defense systems. The upcoming plant aligns with this growth trajectory, ensuring a stable, localized supply of chips that power these devices.

Towards a Self-Reliant Technological Future

With the establishment of this new semiconductor unit, India is not just assembling chips—it is assembling a future. A future where it stands resilient in the face of global supply chain shocks, equipped with the technological prowess and manufacturing strength to meet its own needs and export to the world.

This latest development underlines the Narendra Modi government’s commitment to making India a semiconductor powerhouse, with an eye toward strategic autonomy, economic resilience, and innovation leadership.