India's Silicon Leap Begins with New ₹37 Billion Chip Plant Near Jewar Airport

In a bold move to establish itself as a global player in semiconductor manufacturing, India has approved a ₹37.06 billion ($435 million) chip fabrication facility near the upcoming Jewar airport in Uttar Pradesh. This landmark project is a collaboration between the HCL Group and Taiwan's Foxconn, marking a significant stride in India’s ambition to become a self-reliant electronics manufacturing hub.

The proposed plant is designed to produce 20,000 wafers per month and is expected to generate 36 million display driver chips annually. This facility is part of the India Semiconductor Mission and is the sixth project to receive approval under this initiative. According to the government, commercial production is slated to begin in 2027.

The announcement underscores the government's strategic push to bring advanced chipmaking capabilities to India, a country that currently lacks any operational semiconductor fabrication units. The move is seen as a critical step toward reducing dependence on imports and strengthening India’s presence in the high-tech global supply chain.

Over the past year, several ambitious chip projects have been proposed. While not all have succeeded—such as the shelved $19.5 billion joint venture between Foxconn and Vedanta due to cost concerns—momentum continues to build. Other ongoing projects include an $11 billion semiconductor and testing facility being developed by the Tata Group and a $2.7 billion chip packaging plant from a major U.S.-based company.

Despite occasional setbacks, the government's vision remains clear. By investing in chip manufacturing, India aims to support domestic electronics production, create high-value jobs, and transform the nation into a technology powerhouse. With strategic locations like Jewar and strong global partnerships, India is now making tangible progress toward its goal of becoming a leading player in the semiconductor space.