Business Industry

India Approves ₹3,706 Cr Semiconductor Plant in Jewar

In a major step toward strengthening India’s semiconductor ecosystem, the Union Cabinet has approved the establishment of the country’s sixth semiconductor manufacturing unit. The ₹3,706 crore facility will be developed in Jewar, Uttar Pradesh, through a joint venture between HCL and Taiwanese electronics giant Foxconn.

HCL-Foxconn Semiconductor Plant in Jewar

The plant will be strategically located near the upcoming Noida International Airport, in the Yamuna Expressway Industrial Development Authority (YEIDA) zone. Spread across 48 acres in Sector-28, the facility is expected to produce 20,000 wafers per month, leading to the manufacture of 36 million display driver chips every month. These chips are essential for a wide range of applications, including smartphones, laptops, automotive systems, medical devices, and defense electronics.

The plant is projected to begin commercial production by 2027 and will also contribute to building India’s capabilities in compound semiconductors, sensor fabs, silicon photonics, and outsourced semiconductor assembly and testing (OSAT).

Economic Impact and Job Creation

This will be the first semiconductor plant in Uttar Pradesh and is expected to generate direct employment for at least 2,000 people. The proximity to the international airport under construction in Jewar is expected to boost logistics and attract future investments in the semiconductor and electronics manufacturing sectors. The unit is anticipated to catalyze regional development and position the state as a significant player in India’s high-tech industrial ambitions.

Boost to India’s Semiconductor Mission

The approval is part of the broader India Semiconductor Mission, which seeks to transform the country into a global hub for chip design and manufacturing. Including the new Jewar facility, India now has six approved semiconductor units, with five already under construction in different states. The government’s push also includes efforts to build design and research hubs and promote collaboration among startups, academia, and industry leaders in the semiconductor space.

Government and Industry Reactions

Union IT Minister Ashwini Vaishnaw welcomed the decision, highlighting the progress being made in multiple states where world-class design and chipmaking facilities are emerging. Uttar Pradesh Chief Minister Yogi Adityanath thanked Prime Minister Narendra Modi for selecting Jewar, calling it a testament to the Centre’s commitment to building a self-reliant India in the tech sector.

The HCL-Foxconn venture in Jewar is expected to not only reduce import dependence but also elevate India’s standing in the global semiconductor supply chain. This development signals a new era in Indian electronics manufacturing, anchored in advanced infrastructure, skilled workforce, and strategic policy support.

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