In a move that underscores India’s ambition to become a global semiconductor manufacturing hub, the Union Cabinet has greenlit the establishment of a new semiconductor plant near Jewar in Uttar Pradesh. This facility will be a joint venture between HCL, a prominent Indian IT company, and Foxconn, a leading Taiwanese electronics manufacturer.
This plant marks the sixth semiconductor unit approved under the India Semiconductor Mission, which aims to enhance the nation’s capabilities in this vital sector.
The facility is strategically located in the Yamuna Expressway Industrial Development Authority (YEIDA) region, close to the upcoming Noida International Airport, a positioning that is expected to facilitate logistics and supply chain efficiencies.
The focus of the new plant will be on producing display driver chips, critical components found in various electronic devices, including smartphones, laptops, and automobiles.
With a projected production capacity of 20,000 wafers per month, the facility aims to generate approximately 36 million units of these essential chips monthly. The project entails a significant investment of Rs 3,700 crore, marking an important step toward achieving self-reliance in the semiconductor domain.
Focusing On Expanding the Semiconductor Ecosystem In India
This initiative reflects a broader momentum in India’s semiconductor ecosystem. Numerous state governments are actively engaging with design and fabrication firms, fostering a conducive environment for innovation.
Currently, around 270 academic institutions and 70 startups are engaged in advanced chip design technologies, working on developing new products that could strengthen India’s position in the global semiconductor market.
Notably, 20 innovative products developed by students have reached the “taped out” stage at SCL Mohali, indicating a promising future for domestic chip manufacturing.
Global Suppliers Prepare for Growth
As India’s semiconductor landscape evolves, international equipment and material suppliers are increasing their presence in the country. Major companies like Applied Materials and Lam Research have established operations in India, while suppliers of gases and chemicals such as Merck and Linde are gearing up to support the sector’s expansion.
The rising demand for semiconductors in various industries, including consumer electronics and defense, positions India as a key player in global chip supply chains. The Cabinet’s approval aligns with the government’s broader initiative for an “Atmanirbhar Bharat,” focusing on reducing reliance on imports and building robust domestic capabilities.
