The Union Cabinet has approved two new semiconductor projects worth ₹3,936 crore under the India Semiconductor Mission (ISM), further strengthening India’s efforts to build a self-reliant semiconductor and electronics manufacturing ecosystem. The approved projects focus on advanced electronic component manufacturing and are expected to enhance domestic production capabilities for critical technology sectors.
One of the approved facilities is a joint venture involving HCL Technologies and Foxconn, which will establish an outsourced semiconductor assembly and testing (OSAT) facility in Uttar Pradesh. The second project will focus on semiconductor and electronic component manufacturing, supporting India’s rapidly growing demand for chips used in consumer electronics, automotive systems, telecommunications, industrial automation, and AI infrastructure.
The approvals are part of the broader India Semiconductor Mission, which aims to create a comprehensive semiconductor value chain covering chip design, fabrication, packaging, testing, assembly, and advanced electronics manufacturing. The initiative has already attracted significant investments from global and domestic technology players seeking to diversify semiconductor supply chains.
The new projects are expected to generate thousands of direct and indirect jobs, boost technology transfer, strengthen domestic manufacturing capabilities, and reduce India’s dependence on imported semiconductor components. They also align with the country’s ambitions to become a major global hub for electronics production and advanced technology manufacturing.
Why This Matters
• Adds ₹3,936 crore of new investment to India’s semiconductor ecosystem
• Expands domestic chip packaging, testing, and electronic component manufacturing capacity
• Strengthens the India Semiconductor Mission and the vision of technological self-reliance
• Supports growing demand from AI, automotive, telecom, consumer electronics, and industrial sectors
• Creates high-skilled employment opportunities across semiconductor and electronics manufacturing
• Attracts global technology partnerships, including collaboration between Indian and international firms
• Helps reduce dependence on imported semiconductor components and supply chains
• Accelerates India’s emergence as a global semiconductor and advanced electronics manufacturing hub
• Reinforces India’s position in the rapidly growing global semiconductor industry ecosystem