Context: The Union Cabinet has approved India's sixth semiconductor unit- a ₹3,706 crore project to be set up in Jewar, Uttar Pradesh.
Relevance of the Topic: Prelims: Key facts related to India’s efforts towards semiconductor self-reliance.
India's Sixth Semiconductor Unit
- The chip manufacturing unit will be a joint venture by Indian firm HCL and Foxconn (Taiwanese electronics manufacturing giant). This is the first semiconductor plant in Uttar Pradesh.
- The plant is designed for 20,000 wafers per month. The design output capacity is 36 million units per month.
- The facility will manufacture display driver chips for a wide range of devices, including mobile phones, laptops, personal computers (PCs), automobiles and other display-enabled technologies.
- The unit will attract investments worth ₹3,700 crore. It will fulfill about 40% of India’s chip needs and boost chances of bringing display panel manufacturing to India.
- This semiconductor unit is the sixth to be supported under the ₹76,000 crore first phase of the India Semiconductor Mission (ISM).
India Semiconductor Mission
- Strategic initiative aimed at establishing a robust semiconductor and display ecosystem in the country. It seeks to position India as a global hub for electronics manufacturing and chip design.
- Launched: 2021
- Implemented by: Ministry of Electronics and Information Technology (MeitY) through a special purpose vehicle (SPV) called the India Semiconductor Mission.
- Budget outlay: The total outlay for ISM under the Semicon India Programme is ₹76,000 crore.
- Incentives: Financial incentives up to 50% of the project cost are provided to companies involved in Semiconductor Fabs, Display Fabs, Assembly, Testing, Marking, and Packaging (ATMP/OSAT) units, Semiconductor Design.
Project approved under India Semiconductor Mission:
- As of 2025, six major projects have been approved under the India Semiconductor Mission. Already five semiconductor units are in advanced stages of construction.
| Company / Joint Venture | Location |
| Micron | Sanand, Gujarat |
| Tata Electronics + PSMC (Taiwan) | Dholera, Gujarat |
| Tata Semiconductor Assembly & Test (TSAT) | Morigaon, Assam |
| CG Power + Renesas (Japan) + Stars Microelectronics (Thailand) | Sanand, Gujarat |
| Suchi Semicon | Surat, Gujarat |
| HCL + Foxconn (Taiwan) | Jewar, Uttar Pradesh |
Also Read: India’s push for Semiconductor Chip Production amid Rising Imports