Cabinet approves Rs 3,700-cr semiconductor plant in UP

The Union Cabinet, led by Prime Minister Narendra Modi, has approved the establishment of a new semiconductor manufacturing unit in Uttar Pradesh’s Gautam Budh Nagar district, under the India Semiconductor Mission.

The upcoming facility, to be developed near Jewar airport within the Yamuna Expressway Industrial Development Authority (YEIDA), is projected to attract an investment of Rs 3,700 crore, officials confirmed.

This marks 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 while briefing the media on the Cabinet decision.

The project is a joint venture between HCL, known for its long-standing expertise in hardware development and manufacturing, and Foxconn, a global leader in electronics manufacturing.

The plant will focus on producing display driver chips for a wide range of devices, including mobile phones, laptops, personal computers, automobiles and other electronics with display components. Designed to handle 20,000 wafers per month, the facility is expected to achieve a monthly output capacity of 36 million units.

India’s semiconductor landscape is rapidly evolving, with world-class design facilities emerging across several states. State governments are actively promoting semiconductor design ventures, and innovation is thriving across academic institutions and startups.

Currently, over 270 academic institutions and 70 startups are engaged in cutting-edge chip design, contributing to the development of new technologies. Notably, 20 products designed by students have already been successfully taped out by SCL Mohali.

The HCL-Foxconn JV will become operational in 2027, the minister said. The plant is expected to create employment for 2,000 people, he noted.

Officials say that as India’s domestic semiconductor ecosystem expands, major industry players are establishing a strong presence in the country. Leading equipment manufacturers such as Applied Materials and Lam Research now have operations in India, alongside key gas and chemical suppliers — including Merck, Linde, Air Liquide and Inox — who are scaling up to meet growing industry demand.