Semiconductor Unit in Uttar Pradesh

• 31 May 2025

Why in News? 

The Union Cabinet has approved a ₹3,700 crore display driver chip manufacturing unit at Jewar, Uttar Pradesh.  

• This project is the sixth semiconductor manufacturing unit sanctioned under the first phase of the India Semiconductor Mission (ISM). 

Key Points 

• Project Details: 
  • The unit will be a joint venture between Indian firm HCL and Taiwanese electronics manufacturing giant Foxconn. 
    • Commercial production at the Jewar plant is expected to begin by 2027, necessitating rapid construction and development. 
  • Chips manufactured will be used in laptops, PCs, smartphones, and automobiles. 
• Strategic Importance: 
  • This is the first semiconductor manufacturing plant in Uttar Pradesh, located in the rapidly developing industrial area of Jewar. 
    • The Uttar Pradesh government has launched its own UP Semiconductor Policy - 2024.  
    • This ambitious policy is designed to boost local semiconductor manufacturing, enhancing India’s strategic independence in critical technology sectors. 
  • The plant is expected to fill a critical gap in India’s display and electronics value chain. 
  • Once operational, it is anticipated that a display panel manufacturing plant will also be established in India, potentially meeting about 40% of India’s display capacity. 
• Significance of the Project: 
  • Boost to Make in India & Electronics Manufacturing: The project aligns with India’s push towards self-reliance in semiconductor manufacturing, a key component for technological sovereignty and economic growth. 
  • Employment & Industrial Development: The unit will spur industrial activity in Uttar Pradesh, generating employment and attracting ancillary industries. 
  • Reducing Import Dependence: Enhancing domestic chip production reduces reliance on imports and strengthens India’s electronics supply chain resilience. 

India Semiconductor Mission (ISM) 

• The ISM was launched in 2021 with a total financial outlay of Rs 76,000 crore under the aegis of the Ministry of Electronics and IT (MeitY).  
• It is part of the comprehensive program for the development of sustainable semiconductor and display ecosystems in the country.  
• The programme aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystem.  
• Envisioned to be led by global experts in the Semiconductor and Display industry, ISM will serve as the nodal agency for efficient, coherent and smooth implementation of the schemes.