In a major boost to India’s semiconductor and electronics sector, the Union Cabinet on Wednesday approved a ₹3,706 crore chip manufacturing facility to be established in Jewar, Uttar Pradesh.
The plant will be developed by a joint venture between Indian IT giant HCL and Taiwanese electronics major Foxconn.
Announcing the decision, Information and Broadcasting Minister Ashwini Vaishnaw said the facility will produce display driver chips — essential components that regulate the quality and presentation of content on screens used in mobile phones, laptops, vehicles, and other electronic devices.
Designed with advanced technology, the plant will have a production capacity of 20,000 wafers per month, translating to about 3.6 crore chips monthly. These chips are crucial for enhancing display performance across a wide range of digital products.
“This is the sixth semiconductor plant approved under our policy. The HCL-Foxconn project in Jewar is especially significant as it is likely to pave the way for a full-fledged display panel manufacturing ecosystem in India,” Vaishnaw stated.
Foxconn, the world’s largest electronics manufacturer and a key supplier to companies like Apple, is expected to use the output from the plant not only for domestic consumption but also for its global operations. Once operational, the facility is projected to meet around 40% of India’s total demand for display driver chips.
The plant is scheduled to become operational by 2027 and is expected to create approximately 2,000 direct jobs. Minister Vaishnaw emphasised that the development of semiconductor infrastructure will have a “multiplier effect” on India’s broader electronics manufacturing industry, which currently employs around 25 lakh people.
This move is part of India's broader push to become a global hub for electronics manufacturing and semiconductor production, reducing reliance on imports and strengthening supply chain resilience.