In a significant move to bolster India’s semiconductor manufacturing capabilities, the Union Cabinet has approved the establishment of the country’s sixth semiconductor unit—a ₹3,706 crore project in Jewar, Uttar Pradesh. This venture is a collaboration between India’s HCL Group and Taiwan’s Foxconn, aiming to enhance the nation’s self-reliance in chip production.
Project Overview
- Investment: ₹3,706 crore ($435 million)
- Location: Sector-28, Yamuna Expressway Industrial Development Authority (YEIDA) area, near the upcoming Noida International Airport in Jewar, Uttar Pradesh
- Joint Venture: HCL Group and Foxconn
- Production Capacity: 20,000 wafers per month, manufacturing 36 million display driver chips annually
- Employment: Approximately 2,000 direct jobs
The facility will focus on producing display driver chips, essential components in devices like smartphones, laptops, vehicles, medical equipment, and defense systems. Additionally, the plant will engage in Outsourced Semiconductor Assembly and Testing (OSAT), contributing to the broader semiconductor ecosystem
Strategic Significance
This approval aligns with the India Semiconductor Mission (ISM), a government initiative to reduce dependency on imported semiconductors and establish India as a global hub for electronics manufacturing. The Jewar plant is expected to commence commercial production by 2027, reinforcing the country’s commitment to technological self-reliance.
The strategic location near the upcoming Noida International Airport offers logistical advantages, potentially attracting further investments in the region. The project is anticipated to catalyze regional industrial growth, complementing other initiatives like the medical device and toy parks in the YEIDA area.
Industry Context
The semiconductor industry in India has witnessed a surge in investments, with several projects underway:
- Tata Group: An ₹11,000 crore semiconductor manufacturing and testing facility.
- Micron Technology: A $2.7 billion chip packaging plant.Reuters
These developments signify India’s strategic push to become a key player in the global semiconductor supply chain.
Feature Image Concept: An aerial view of the proposed semiconductor plant site in Jewar, Uttar Pradesh, with digital overlays illustrating the facility’s layout and proximity to the upcoming Noida International Airport.
