India Approves Its 6th Semiconductor Chip Manufacturing Plant In U.P

In a major step towards semiconductor self-sufficiency, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of India’s sixth semiconductor chip manufacturing facility under the India Semiconductor Mission.

This new state-of-the-art unit will be developed through a joint venture between Indian tech major HCL and global electronics leader Foxconn. The facility is strategically located near the upcoming Jewar Airport in the Yamuna Expressway Industrial Development Authority (YEIDA) zone, Uttar Pradesh.

With a total investment of ₹3,706 crore—of which ₹1,500 crore will be provided as incentives by the central government—the plant is designed to manufacture display driver chips for smartphones, laptops, vehicles, PCs, and other screen-based devices. It will have a production capacity of 20,000 wafers per month, translating to 36 million chips monthly once operational.

Speaking at a Cabinet briefing, Union Minister Ashwini Vaishnaw confirmed that the plant will commence production in 2027 and is expected to create around 2,000 jobs, strengthening the local economy and job market.

This facility is Foxconn’s second attempt to enter India’s chip sector after a previous JV with Vedanta dissolved in 2023 due to the lack of a viable technology partner.

The Jewar plant is the first semiconductor project in Uttar Pradesh under the ₹76,000 crore India Semiconductor Mission. It joins four other projects in Gujarat and one in Assam, reinforcing the government’s commitment to making India a global hub for semiconductor chip manufacturing.

The broader semiconductor ecosystem in India continues to attract foreign investment, with major players like Applied Materials, Lam Research, Merck, and Linde expanding their presence in the country.

This strategic move aligns with the vision of Atmanirbhar Bharat, enabling India to reduce its dependency on chip imports and cater to the surging demand in sectors like consumer electronics, defense, electric vehicles, and medical technology.

Other Related Topics: India Semiconductor Mission