In a move to strengthen India’s semiconductor ecosystem, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of a sixth semiconductor manufacturing unit under the India Semiconductor Mission. The new unit, a joint venture between Indian IT major HCL and global electronics manufacturing giant Foxconn, will be set up near the upcoming Jewar Airport in the Yamuna Expressway Industrial Development Authority (YEIDA) region.
This latest approval marks another milestone in India’s strategic pursuit of self-reliance in semiconductor manufacturing—an industry considered crucial for the country’s technological sovereignty and economic security. The proposed plant will specialize in the production of display driver chips used across a broad spectrum of devices, including mobile phones, laptops, personal computers, automotive displays, and other digital screens.
Designed to process 20,000 wafers per month, the facility will have an estimated output capacity of 36 million chips monthly. The project is expected to attract an investment of ₹3,700 crore.
The announcement comes at a time when five semiconductor units are already in advanced stages of construction, signaling strong momentum in India’s semiconductor journey. The new unit is poised to play a pivotal role in meeting the growing domestic demand for semiconductors, driven by the rapid expansion of manufacturing in sectors such as electronics, medical devices, defence systems, and power electronics.
HCL, with its extensive history in hardware development, and Foxconn, a global leader in contract electronics manufacturing, bring complementary strengths to the collaboration. Their joint venture is expected to accelerate India’s ability to produce advanced semiconductors at scale.
Complementing this industrial progress is the growing participation of India’s academic and startup ecosystem. Over 270 academic institutions and 70 startups are currently engaged in semiconductor design and innovation. Notably, 20 student-led product designs have already been successfully taped out at the Semi-Conductor Laboratory (SCL) in Mohali.
India’s semiconductor supply chain is also witnessing rapid growth. Major global suppliers such as Applied Materials and Lam Research, key players in semiconductor equipment manufacturing, have recently established operations in India. Leading gas and chemical providers—Merck, Linde, Air Liquide, and Inox—are also scaling up their presence to support the expanding industry.
