PM Modi hails new semiconductor unit in Uttar Pradesh as boost for innovation

Prime Minister Narendra Modi on Wednesday highlighted India’s continued progress in the semiconductor sector, following the Union Cabinet’s approval to establish a new semiconductor manufacturing unit in Uttar Pradesh.

He said the move would foster innovation, growth, and job opportunities for the youth.

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. https://t.co/Kl4yms8RGW

— Narendra Modi (@narendramodi) May 14, 2025

"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," PM Modi stated in a post on X.

The newly approved facility marks the sixth semiconductor unit under the India Semiconductor Mission, complementing five others currently in advanced stages of construction. This latest project is a joint venture between Indian technology major HCL and global electronics manufacturing leader Foxconn.

The HCL-Foxconn facility will be set up near the upcoming Jewar airport, within the Yamuna Expressway Industrial Development Authority (YEIDA) region.

India Takes a Giant Leap in Semiconductors!

The Cabinet has approved the setting up of a new semiconductor unit in Uttar Pradesh through a joint venture between HCL and Foxconn.

With a planned capacity of 20,000 wafers per month, the facility will produce display driver chips… pic.twitter.com/NSVI6pKTB2

— MyGovIndia (@mygovindia) May 14, 2025

The plant is focused on manufacturing display driver chips—critical components used in devices such as mobile phones, laptops, PCs, automotive systems, and other electronics with display capabilities. The plant is expected to handle 20,000 wafers per month and produce up to 36 million units monthly.

According to an official release, the semiconductor industry is gaining momentum across India, with world-class design facilities being established in several states. State governments are actively encouraging design-focused firms.

In addition, a significant number of students and startups are entering the sector—270 academic institutions and 70 startups are currently involved in advanced chip design work.

Twenty new products designed by students from these institutions have already been taped out by SCL Mohali, showcasing the growing talent pool within India.

The upcoming semiconductor unit is set to attract an investment of ₹3,700 crore. As India deepens its presence in the global semiconductor value chain, key ecosystem players have also increased their footprint. Notably, global equipment manufacturers Applied Materials and Lam Research now have a presence in the country.