Cabinet Clears Sixth Semiconductor Unit For India; HCL-Foxconn JV To Set Up Plant In Jewar

The Union Cabinet has approved the establishment of India’s sixth semiconductor manufacturing facility, to be developed near the upcoming Jewar airport in Uttar Pradesh.

The plant will be built under a joint venture between Indian tech major HCL and Taiwan’s electronics manufacturing giant Foxconn.

Set to begin production in 2027, the facility marks a strategic expansion of India’s semiconductor footprint.

It will be situated within the Yamuna Expressway Industrial Development Authority (YEIDA) region and will likely draw investment worth Rs 3,700 crore.

HCL brings decades of expertise in hardware development, while Foxconn is a globally recognised name in electronics manufacturing.

Their collaboration is anticipated to significantly contribute to India’s semiconductor ambitions.

Plant Capacity & Usage

The Jewar plant will be capable of producing 20,000 wafers per month, translating into 36 million chips each month.

These chips will be used across a wide range of sectors, including smartphones, laptops, automobiles, personal computers, and more.

Union Minister Ashwini Vaishnaw, speaking after the Cabinet meeting chaired by Prime Minister Narendra Modi, noted that work on the other five approved semiconductor units is already underway.

One of those units is expected to be inaugurated later this year.

Strengthening Indigenous Capability

The Indian semiconductor sector is still in its early stages but has seen increasing interest from both domestic and global players.

The COVID-19 pandemic and resulting chip shortages underscored the importance of domestic manufacturing, both for national security and for technological self-reliance.

The five previously approved units are being constructed in Gujarat and Assam.

“Already five semiconductor units are in advanced stages of construction. With this sixth unit, Bharat moves forward in its journey to develop the strategically vital semiconductor industry,” the government stated.

The government further added, “Semiconductor industry is now shaping up across the country. World-class design facilities have come up in many states across the country. State governments are vigorously pursuing the design firms.”

Growing Ecosystem & Talent Base

The government highlighted how states are actively encouraging semiconductor design companies and supporting infrastructure.

Across the country, over 270 academic institutions and 70 startups are now engaged in chip design.

Twenty products developed by students have already been taped out by SCL Mohali.

Global supply chain partners are also deepening their presence in India. Applied Materials and Lam Research—two of the world’s largest semiconductor equipment providers—now operate in the country.

Additionally, chemical and gas firms such as Merck, Linde, Air Liquide, and Inox are preparing to support the industry’s expected growth.

With demand for semiconductors rising rapidly, driven by growth in electronics, automotive, medical devices, power systems, and defence equipment, the Jewar plant is poised to play a critical role in India’s broader ‘Atmanirbhar Bharat’ vision.

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