The Union Cabinet has approved the establishment of a semiconductor manufacturing unit near Jewar airport in Uttar Pradesh. The project is a joint venture between HCL and Foxconn and is expected to attract an investment of INR 37 billion. The facility will focus on manufacturing display driver chips used in devices such as mobile phones, laptops, automobiles, and PCs.

According to the project details, the plant will have a production capacity of 20,000 wafers per month, with an output capacity of 36 million units per month. The unit will be located within the Yamuna Expressway Industrial Development Authority (YEIDA) area.

This will be the sixth semiconductor unit under construction as part of the India Semiconductor Mission. Five other units are already in advanced stages of development. The approved unit contributes to a broader effort to establish semiconductor manufacturing capabilities in the country.

In a related development, 270 academic institutions and 70 startups are working on semiconductor design technologies. Twenty products developed by students have been taped out by the Semiconductor Laboratory (SCL) in Mohali.

Companies such as Applied Materials and Lam Research have established operations in India. Gas and chemical suppliers, including Merck, Linde, Air Liquide, and Inox, are also expanding their presence to support the growing semiconductor sector.

HCL is an Indian technology company with experience in hardware development and manufacturing. Foxconn is an electronics manufacturing company based in Taiwan.