Context:

The Union Cabinet, chaired by Prime Minister of India, approved the establishment of a sixth semiconductor unit in Uttar Pradesh under the India Semiconductor Mission.

More on News:

  • The new unit is a joint venture between HCL and Foxconn, to be located near Jewar Airport in the Yamuna Expressway Industrial Development Authority (YEIDA) region.
    • Four semiconductor plants, including a fab and three assembly units, are under development in Gujarat, and one assembly and packaging plant is being constructed in Assam.
  • The facility will manufacture display driver chips for mobile phones, laptops, automobiles, PCs, and other display-based devices.
  • The plant is designed to handle 20,000 wafers per month, with a production target of 36 million chips monthly.
  • The plant will receive an investment of ₹3,706 crore, with approximately ₹1,500 crore provided by the government as part of incentives under the chip manufacturing scheme.
  • India’s semiconductor ecosystem is expanding, with five units already in advanced stages of construction, and world-class design facilities emerging across various states.
  • Currently, 270 academic institutions and 70 startups are engaged in semiconductor design; 20 student-developed products have been taped out by SCL Mohali.
  • Major global equipment manufacturers like Applied Materials and Lam Research, along with gas and chemical suppliers such as Merck, Linde, Air Liquide, and Inox, are establishing or expanding their presence in India to support the growing semiconductor industry.
  • The rising demand for semiconductors—driven by growth in sectors like laptops, mobile phones, medical devices, power electronics, defense, and consumer electronics—aligns with the Prime Minister’s vision of an Atmanirbhar Bharat (self-reliant India).
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