In May 2025, the Union Cabinet chaired by Prime Minister (PM) Narendra Modi has approved a Joint Venture (JV) between Noida (Uttar Pradesh, UP) based HCL Group and Taiwanese electronics company Hon Hai Precision Industry Co., Limited (Foxconn), to set up semiconductor unit near Jewar Airport in the Yamuna Expressway Industrial Development Authority (YEIDA) in Uttar Pradesh (UP).
- This marks the 6th semiconductor unit approved by the union cabinet under Rs 76,000 crore India Semiconductor Mission (ISM).
- Also, this will be the 1st–ever semiconductor chip unit in UP to be established under ISM.
Key Points:
i.The new proposed semiconductor unit will be developed with an estimated cost of Rs 3,706 crore, of which around Rs 1,500 crore will be provided by the Government of India (GoI) as part of incentives under the chip manufacturing scheme.
ii.The proposed unit is expected to start production in 2027, and will be able to meet nearly 40% of India’s local demand for semiconductor chips.
iii.It will manufacture display driver chips for mobile phones, laptops, automobiles, Personal Computers (PCs), and various other devices that have display.
iv.The unit will be designed for 20,000 wafers per month and will have capacity to produce 36 million chips per month. It is also expected to generate around 2000 direct job opportunities.
India Semiconductor Mission (ISM):
i.ISM, a flagship programme of GoI, was officially launched by the Ministry of Electronics & Information Technology (MeitY) in 2021 with total budget outlay of Rs 76,000 crore (or, around USD 10 billion).
ii.It aimed to develop a full-stack semiconductor ecosystem locally, from design to manufacturing and testing.
iii.The mission has set the target to reduce India’s dependence on chip import (at present, India imports 65%-70% of chips components, mostly from China), promote domestic production, and make India hub for chipmakers globally.
Other 5 Semiconductor Units Approved under ISM:
i.United States of America (USA)-based chip maker company, Micron Technology Inc. will set up semiconductor testing and manufacturing unit in Sanand, Gujarat for approximately Rs 22,000 crore.
ii.Mumbai (Maharashtra)-based wholly owned subsidiary of Tata Sons, Tata Electronics Private Limited (TEPL) will establish semiconductor fab facility in Dholera, Gujarat (India) with estimated cost of Rs 91,526 crore.
- The proposed fab facility will be developed in a technology partnership with Powerchip Semiconductor Manufacturing Corp. (PSMC), Taiwan.
iii.Jagiroad (Assam)-based Tata Semiconductor Assembly and Test Pvt. Limited (TSAT), India’s 1st indigenous and greenfield semiconductor assembly test facility will set up Outsourced Semiconductor Assembly and Testing (OSAT) facility in Morigaon, Assam, with an investment of Rs 27,120 crore in February 2024.
iv.Mumbai (Maharashtra)-based CG Power and Industrial Solutions Limited’s will establish an OSAT facility in Sanand, Gujarat with an investment of Rs 7,584 crore.
- The facility will be developed as a Joint Venture (JV) partnership with USA-based Renesas Electronics America Inc., and Thailand-based STARS Microelectronic.
v.Gurugram (Haryana)-based Kaynes Technology India Limited (KTIL) will set up OSAT facility at Sanand, Gujarat for Wire Bond Interconnect, Substrate Based Packages with an investment of Rs 3,307 crorewas approved.
About Ministry of Electronics & Information Technology (MeitY):
Union Minister- Ashwini Vaishnaw (Rajya Sabha member- Odisha)
Minister of State (MoS)- Jitin Prasada (Constituency- Pilibhit, Uttar Pradesh, UP)
