PM Modi Hails Cabinet Nod For New Chip Unit In UP; Says It Will Boost Innovation & Youth Opportunities

Prime Minister Narendra Modi on Wednesday said India is making continued progress in the semiconductor sector, as the Union Cabinet cleared a new chip manufacturing unit in Uttar Pradesh.

The move will likely accelerate growth, drive innovation, and open up employment avenues for the youth.

Taking to X, PM Modi posted, “India’s strides in the world of semiconductors continue! Today’s Cabinet decision regarding the establishment of a semiconductor unit in Uttar Pradesh will boost growth and innovation. It will create innumerable opportunities for the youth as well.”

The newly approved facility becomes the sixth semiconductor unit under the India Semiconductor Mission.

Five other plants are already under construction, and the latest approval further strengthens India’s efforts to build a robust semiconductor ecosystem.

HCL and global electronics giant Foxconn will jointly set up the upcoming unit.

The plant will be located near Jewar Airport, in the Yamuna Expressway Industrial Development Authority (YEIDA) region.

While HCL brings long-standing expertise in hardware manufacturing, Foxconn is globally recognised for its electronics production capabilities.

The facility will, however, focus on manufacturing display driver chips used in mobile phones, laptops, vehicles, personal computers, and other devices.

It is to process 20,000 wafers per month, with an expected monthly output of 36 million chips.

An official release noted, “The 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.”

About 270 academic institutions and 70 startups are currently working on advanced chip designs.

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

The newly approved unit will bring in an investment of Rs 3,700 crore, providing further impetus to India’s chip manufacturing drive.

Global semiconductor equipment makers Applied Materials and Lam Research have also expanded their presence in India, supporting the nation’s evolving chip ecosystem.

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