Cabinet Approves Sixth Semiconductor Unit in UP Under ISM

In a significant development aimed at strengthening India’s domestic semiconductor manufacturing capabilities, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of a new semiconductor fabrication facility in Uttar Pradesh. The upcoming unit will be located in the Yamuna Expressway Industrial Development Authority (YEIDA) region, near the upcoming Jewar airport.

This marks the sixth semiconductor fabrication plant approved under the India Semiconductor Mission (ISM). The decision reinforces the government’s continued focus on making India a global hub for semiconductor manufacturing and design as part of its larger vision for Atmanirbhar Bharat.

HCL-Foxconn JV to Set Up Display Driver Chip Unit

The new semiconductor unit will be set up through a joint venture between India’s HCL Group and Taiwan-based electronics manufacturing major Foxconn. The facility will focus on the production of display driver chips, which are essential components used in a wide range of electronic devices including smartphones, laptops, monitors, televisions, automobiles, and other display-based gadgets.

The plant is designed to process 20,000 wafers per month, enabling the production of up to 36 million display driver chips monthly. The total investment for the project is expected to be Rs 3,706 crore.

This facility will cater to both domestic and global demand and is expected to play a key role in reducing India’s dependence on imports for critical semiconductor components.

Semiconductor Ecosystem Expanding Across India

The announcement comes at a time when India’s semiconductor ecosystem is witnessing accelerated growth. According to the government, five other semiconductor facilities are already under construction across various states under the India Semiconductor Mission. The latest plant in Uttar Pradesh adds further depth to this nationwide infrastructure expansion.

In addition to manufacturing units, the semiconductor design ecosystem in the country is also seeing active development. The government has stated that over 270 academic institutions and 70 Indian startups are currently working on semiconductor design technologies. These include innovations in chip design for applications across automotive, consumer electronics, medical devices, power electronics, and industrial systems.

Notably, 20 chip products designed by students have already been taped out by the Semiconductor Laboratory (SCL) in Mohali, reflecting early but promising outcomes from government-supported design initiatives.

Industry Participation and Global Suppliers Entering India

India's semiconductor push is being bolstered by increased participation from both Indian and international players. Global equipment manufacturers such as Applied Materials and Lam Research now have a presence in India. Additionally, global suppliers of industrial gases and chemicals like Merck, Linde, Air Liquide, and Inox have begun or expanded their operations in the country to support upcoming fabrication units.

This growing network of manufacturing and support services is gradually building a comprehensive semiconductor value chain within India, including equipment, materials, fabrication, design, and packaging.

Strategic Significance and Long-Term Goals

Semiconductors are critical for several strategic and high-tech sectors including telecommunications, defence, aerospace, artificial intelligence, consumer electronics, and smart mobility. India’s current reliance on imported chips has long been seen as a vulnerability. By establishing fabrication capabilities domestically, the country aims to secure its supply chains and reduce strategic risks.

The YEIDA-based unit is expected to not only boost local employment and infrastructure development but also enhance India’s competitiveness in the global semiconductor industry. The government views such developments as essential to supporting India’s aspirations of becoming a $1 trillion digital economy.

The Cabinet's approval of the sixth semiconductor unit under the India Semiconductor Mission is a key milestone in the country’s push to become self-reliant in semiconductor technology. With industry giants like HCL and Foxconn joining forces, and active participation from academia and startups, India’s semiconductor roadmap appears to be gaining momentum.

The new facility in Uttar Pradesh is expected to further strengthen India's presence in the global electronics supply chain and contribute significantly to the country's long-term technological resilience and economic growth.