In a significant step towards bolstering India’s semiconductor capabilities and strengthening its consumer electronics sector, the Union Cabinet has approved the establishment of a new chip manufacturing plant in Uttar Pradesh. The facility will be located near the upcoming Jewar airport and is being developed as a joint venture between Indian IT major HCL and Taiwanese electronics giant Foxconn.
The new plant will focus on producing display driver chips—vital components that power visual displays in a wide range of electronic devices. These include smartphones (notably iPhones), laptops, personal computers, automotive dashboards, and smart displays. With this approval, all such display chips for both consumer and automotive electronics will now be manufactured in India, specifically in Jewar.
The proposed facility involves an investment of ₹3,706 crore and becomes the sixth project sanctioned under the India Semiconductor Mission.
The plant is expected to have a monthly production capacity of 20,000 wafers and 36 million chips, addressing a growing global demand for display technology. These chips are essential for delivering high-resolution visuals and are used in everything from mobile phones and tablets to in-vehicle infotainment systems.
Foxconn, a major global supplier to Apple and a dominant force in electronics manufacturing, brings valuable semiconductor manufacturing expertise to the partnership. Its collaboration with HCL, a homegrown tech leader, marks a strong vote of confidence in India’s semiconductor roadmap and its ability to contribute meaningfully to global supply chains in display technology.
Given the rising demand for advanced displays in smartphones, laptops, vehicles, and consumer electronics, the new facility will cater to both India’s domestic market and the international export market.
Also read: PM chairing CCS meet, first since pause in India-Pak hostilities
The plant will be set up in the Yamuna Expressway Industrial Development Authority (YEIDA) region, an emerging industrial corridor near the Delhi-NCR area. It is expected to create around 2,000 direct jobs, further contributing to the local economy and employment.
This development aligns closely with Prime Minister Narendra Modi’s vision of 'Atmanirbhar Bharat' (self-reliant India), aiming to build a resilient, domestic high-tech manufacturing ecosystem. By expanding India's capabilities in semiconductor fabrication, the project signifies a critical step toward reducing dependence on imports and building indigenous technological strength.
Beyond manufacturing, India is also investing in the broader semiconductor ecosystem, including research, design, and innovation. Over 270 academic institutions and 70 startups across the country are involved in next-generation chip design initiatives. Additionally, international semiconductor technology firms such as Applied Materials, Lam Research, and Merck have begun establishing operations in India to support this rapidly developing ecosystem.
The approval of the Foxconn–HCL joint venture comes at a time when global technology leaders, including Apple, are actively seeking to diversify their manufacturing bases and increase their presence in India. This move not only supports India’s ambitions in the chip sector but also strengthens its positioning as a global hub for electronics manufacturing and innovation.
Also Read: CDS, military chiefs brief President on Operation Sindoor
Follow us
