Cabinet Nod to Semiconductor Unit in Jewar Boosts Uttar Pradesh
PM Narendra Modi and Jewar Airport (Images PMO, Facebook_
HCL-Foxconn Semiconductor Unit in Jewar to Boost India’s Chip Ambitions and Regional Growth
By Amit Kumar
NEW DELHI, May 14, 2025 – In a landmark move to bolster India’s semiconductor industry, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of the country’s sixth semiconductor manufacturing unit under the India Semiconductor Mission (ISM).
The ₹3,706 crore project, a joint venture between India’s HCL Group and Taiwanese electronics giant Foxconn, will be located near the upcoming Noida International Airport in Jewar, Uttar Pradesh, within the Yamuna Expressway Industrial Development Authority (YEIDA) region.
According to the Press Information Bureau (PIB) release, the new facility will manufacture display driver chips critical for mobile phones, laptops, automobiles, personal computers, and other display-enabled devices.
Designed to process 20,000 wafers per month, the plant will have an output capacity of 36 million chips monthly, significantly enhancing India’s domestic chip production capabilities. “With this sixth unit, Bharat moves forward in its journey to develop the strategically vital semiconductor industry,” the PIB statement noted, highlighting that five other semiconductor units are already in advanced stages of construction.
The partnership leverages HCL’s extensive experience in hardware development and Foxconn’s global expertise in electronics manufacturing. Union Minister for Information and Broadcasting Ashwini Vaishnaw, briefing the media, emphasized the project’s alignment with PM Modi’s vision of an ‘Atmanirbhar Bharat’ (self-reliant India).
“This plant will cater to the surging demand for semiconductors in laptops, mobile phones, servers, medical devices, power electronics, defense equipment, and consumer electronics,” the PIB release stated.
Impact on Jewar and Regional Development
The strategic location near Jewar’s upcoming international airport is expected to transform the region into a high-tech industrial hub. The project, involving an investment of ₹3,706 crore, is projected to create approximately 2,000 direct jobs, boosting local employment and economic growth.
IndianTechGuide in a post on X said: “Cabinet has approved the sixth semiconductor unit… in Jewar, Uttar Pradesh,” signaling a major step for the region. The proximity to the airport enhances logistical efficiency, positioning Jewar as a key node in India’s semiconductor ecosystem and attracting further investments.
The project is also poised to catalyze infrastructure development in the YEIDA region, complementing the airport’s role as a global connectivity hub. The project is set to begin production in 2027. It will cater to 40% of India’s demand for display driver chips. The project has the potential to cut down dependency on China’s imports.
The Cabinet approval for the semi-conductor project also boosted Uttar Pradesh’s push to become a manufacturing powerhouse. Chief Minister Yogi Adityanath previously claimed the state is producing over 55% of India’s mobile phones and components.
Broader Semiconductor Ecosystem Growth
The PIB release underscored the rapid growth of India’s semiconductor ecosystem, with world-class chip design clusters emerging across states and over 70 startups and 270 academic institutions working on cutting-edge technologies. Notably, 20 chip products developed by students have been taped out by the Semiconductor Laboratory (SCL) in Mohali.
Global equipment giants like Applied Materials and Lam Research, along with chemical and gas suppliers such as Merck, Linde, Air Liquide, and Inox, are scaling up operations in India to support the burgeoning industry.
For Jewar, the semiconductor plant, combined with the international airport, is expected to drive urbanization, attract ancillary industries, and enhance the region’s global visibility. The sixth semiconductor unit also boosts Jewar in Gautam Buddha Nagar to emerge as a pivotal hub for high-tech manufacturing and regional development.
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