The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of a new semiconductor manufacturing facility in Uttar Pradesh’s Gautam Budh Nagar district, under the India Semiconductor Mission.
The upcoming unit will be developed near the Jewar airport within the Yamuna Expressway Industrial Development Authority (YEIDA) zone and is expected to attract an investment of ₹3,700 crore, officials confirmed.
This will be the sixth semiconductor unit in India, with five others already in advanced stages of construction. “With this new unit, India continues to strengthen its position in the strategically vital semiconductor sector,” Information and Broadcasting Minister Ashwini Vaishnaw said during a Cabinet briefing.
The project will be executed as a joint venture between HCL, a long-standing leader in hardware development, and Foxconn, a global electronics manufacturing giant. The facility will specialize in the production of display driver chips used in a wide array of electronic devices, including smartphones, laptops, PCs, automobiles, and other display-based electronics.
Designed to process 20,000 wafers per month, the plant aims to achieve an output capacity of 36 million units monthly. The HCL-Foxconn JV is slated to become operational in 2027 and is expected to generate employment for around 2,000 people.
India’s semiconductor landscape is undergoing rapid transformation. In addition to large-scale manufacturing units, several world-class chip design facilities are emerging across the country. State governments are actively supporting these ventures, fostering innovation through academic institutions and startups.
Currently, more than 270 academic institutions and 70 startups are involved in advanced chip design. Notably, 20 student-designed products have already been successfully taped out by the Semiconductor Laboratory (SCL) in Mohali.
As India’s domestic semiconductor ecosystem expands, major global players are establishing a strong footprint in the country. Leading equipment manufacturers such as Applied Materials and Lam Research now operate in India, while key suppliers of gases and chemicals — including Merck, Linde, Air Liquide, and Inox — are scaling up to meet rising demand.
