Convergence India
header banner
New Chip Plant Approved Near Jewar—Is India becoming the New Taiwan?
India's semiconductor journey gains momentum with a new HCL-Foxconn plant near Jewar, Uttar Pradesh.

By Indrani Priyadarshini

on May 14, 2025

Prime Minister Narendra Modi has sanctioned the establishment of a sixth semiconductor manufacturing unit under the India Semiconductor Mission. This new facility, a collaborative venture between HCL and Foxconn, is set to be constructed near the Jewar Airport within the Yamuna Expressway Industrial Development Authority (YEIDA) region in Uttar Pradesh.

Strategic Collaboration 

HCL, renowned for its extensive experience in hardware development and manufacturing, is joining forces with Foxconn, a global leader in electronics manufacturing. Their partnership aims to produce display driver chips essential for a wide array of devices, including mobile phones, laptops, automobiles, and personal computers. The plant is designed to handle 20,000 wafers monthly, translating to an output capacity of 36 million units per month.

 

Semiconductor Infra In India 

This initiative marks the sixth semiconductor unit approved under the national mission, with five others already in advanced stages of construction. The semiconductor industry is witnessing rapid growth across India, with state governments actively promoting the establishment of world-class design facilities. Currently, 270 academic institutions and 70 startups are engaged in cutting-edge design technologies, contributing to the development of new products. Notably, 20 products developed by students have been successfully taped out by the Semiconductor Laboratory (SCL) in Mohali.

Investment & Ecosystem Development

The upcoming semiconductor unit is expected to attract an investment of Rs 3,700 crore. Complementing this growth, major equipment manufacturers like Applied Materials and Lam Research have established a presence in India. Additionally, key gas and chemical suppliers, including Merck, Linde, Air Liquide, and Inox, are preparing to support the burgeoning semiconductor industry.

Aligning with Atmanirbhar Bharat

The increasing demand for semiconductors, driven by the rapid expansion of sectors such as consumer electronics, medical devices, power electronics, and defence equipment, underscores the importance of this new facility. This development aligns with Prime Minister Modi's vision of an Atmanirbhar Bharat (self-reliant India), aiming to strengthen the country's position in the global semiconductor landscape.