Prime Minister Narendra Modi on Saturday inaugurated the HCL-Foxconn semiconductor joint venture, India Chip Pvt Ltd, at the Yamuna Expressway Industrial Development Authority (YEIDA) site in Uttar Pradesh, positioning the state as a key pillar of India’s chipmaking ambitions.
Launched via video conferencing, the Outsourced Semiconductor Assembly and Test (OSAT) facility has been set up with an investment of over ₹3,700 crore. The plant will manufacture display driver chips used in mobile phones, laptops, automobiles and consumer electronics.
Describing the decade as India’s “tech-ade”, Modi said semiconductor manufacturing would anchor the country’s technological rise in the 21st century.
“Despite starting late, India has approved 10 semiconductor units under the Semiconductor Mission, with four nearing production,” he said, linking the project to the broader push for high-end electronics and digital infrastructure.
Operating under the Modified Assembly, Testing, Marking and Packaging (ATMP) scheme, the YEIDA facility will have a capacity to process 20,000 wafers per month. The government expects it to significantly reduce India’s dependence on imported chips while strengthening domestic supply chains for electronics and automobile manufacturers.
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The Prime Minister said the project would generate thousands of direct and indirect jobs for engineers, technicians and skilled workers. He added that such facilities catalyse the growth of ancillary industries, design centres, startups and skill development ecosystems wherever they are established.
Highlighting Uttar Pradesh’s strategic location advantage, Modi pointed to the proximity of the upcoming Jewar International Airport, which is expected to boost logistics efficiency and global connectivity. He said the plant would reinforce the state’s position in the global electronics value chain while advancing the vision of Atmanirbhar Bharat.
The venture combines HCL’s hardware expertise with Foxconn’s global manufacturing strength, marking the sixth semiconductor unit approved under the national mission and the first in Uttar Pradesh.
Calling the week “historic” following the India AI Impact Summit in New Delhi, Modi said India was emerging as a trusted partner in high-end electronics manufacturing. The semiconductor push, he added, reflects unprecedented technological investments that will shape the country’s economic trajectory for decades to come.
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