India’s Semiconductor Push Gets a Major Boost with New Plant in Jewar
In a major push to bolster India’s semiconductor ecosystem and reduce reliance on imports, the Union Cabinet on Thursday approved the establishment of the country’s sixth semiconductor manufacturing unit in Jewar, Uttar Pradesh. The upcoming facility will be developed under the India Semiconductor Mission and is poised to become a critical component of India’s long-term vision to become self-reliant in chip manufacturing.
HCL-Foxconn Venture to Power the Project
The semiconductor unit is a joint venture between HCL Group and Foxconn, with an estimated investment of ₹3,706 crore. The new facility will focus on the manufacturing of Display Driver ICs, which are integral components for mobile phones, laptops, personal computers, and vehicles.
The approved fabrication plant is expected to manufacture up to 36 million chips per month, with a monthly wafer capacity of 20,000. The plant is expected to become operational in the next few years and will generate employment for nearly 2,000 people.
Why This Matters
Semiconductors are the heart of modern electronics. India, which currently imports a significant share of its semiconductor needs, has been pushing to build domestic manufacturing capacities to secure its position in the global tech supply chain. This new unit aligns with the vision of ‘Atmanirbhar Bharat’ and the Production-Linked Incentive (PLI) scheme rolled out to attract global players to invest in chip manufacturing in India.
Union IT and Railways Minister Ashwini Vaishnaw, while announcing the decision, said:
“This is a landmark step towards building India’s capabilities in semiconductor design, fabrication, and manufacturing. The new facility at Jewar will further strengthen India’s ability to meet domestic demand and eventually serve global markets.”
Building on Semiconductor Momentum
The upcoming Jewar unit is part of a broader strategy to develop a complete semiconductor ecosystem in the country. The move comes on the heels of other major announcements, including the Tata Group’s semiconductor unit in Gujarat and earlier approvals for plants in Dholera and Assam.
According to government sources, the chip unit in Jewar will also contribute to the supply chain of critical components required for consumer electronics and electric vehicles—two sectors projected to grow exponentially in India over the next decade.
Location Advantage: Why Jewar?
Jewar in Greater Noida is fast becoming a hub for infrastructure and high-tech investment. Its proximity to the Noida International Airport, expressways, and dedicated freight corridors makes it a strategic choice for industries dependent on high-speed logistics and connectivity.
“The new semiconductor unit in Jewar is a smart move. It brings high-tech manufacturing closer to the NCR region, which already houses a significant electronics and startup ecosystem,” said an industry analyst tracking India’s chip push.
Future Outlook
The India Semiconductor Mission has already received interest from multiple global players. The Jewar facility adds to the country’s ambition of becoming a global semiconductor hub. The government is confident that these developments will also lead to growth in chip design startups, R&D centers, and skilled job creation.
India’s vision is not just to manufacture chips but to create an end-to-end semiconductor value chain, including chip design, packaging, testing, and fabrication.
Looking Ahead
As the world grapples with chip shortages and supply chain risks, India’s move to approve a sixth semiconductor unit is timely and strategic. The facility in Jewar is more than just a factory—it is a symbol of India’s growing aspiration to join the ranks of global technology leaders.