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.
- The unit will be a joint venture between Indian firm HCL and Taiwanese electronics manufacturing giant Foxconn.
- 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.
- This is the first semiconductor manufacturing plant in Uttar Pradesh, located in the rapidly developing industrial area of Jewar.
- 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.
