Noida: Prime Minister Narendra Modi on Saturday framed India's push into semiconductors as central to building a self-reliant nation, saying the country's development depended on making critical chips at home and creating a trusted supply chain for the world.
"A developed India can only be achieved when the country becomes self-reliant. For that, it is extremely important that chips are made in India," he said.
The PM made the remarks while virtually laying the foundation stone of India Chip Private Limited — a joint venture between HCL Group and Foxconn — for an outsourced semiconductor assembly and test (OSAT) facility in Sector 28 of Yamuna Expressway Industrial Development Authority (YEIDA) region.
The advanced facility, planned with an investment of about Rs 3,700 crore, is expected to be operational by 2028. It will manufacture display driver integrated circuits (DDICs) and is designed to process 20,000 wafers a month. The project is projected to generate more than 3,500 jobs, while also spurring local supply chains and ancillary industries.
Those present at the site were chief minister Yogi Adityanath and Union minister for railways, information and broadcasting and electronics & IT Ashwini Vaishnaw. HCL Group chairperson Roshni Nadar Malhotra and her Hon Hai Technology Group (Foxconn) counterpart Young Liu also attended the event.
In his address, Modi described semiconductors as the backbone of digital economy, linking them to everyday services and strategic sectors. "Whether it is digital India, artificial intelligence, 5G, 6G, electric vehicles, medical devices or defence equipment —semiconductors are essential components in all of them. Without chips, modern life comes to a standstill," he said.
He also drew a broader geopolitical comparison to underline why chip capability mattered. "In the 20th century, nations that possessed oil gained prosperity and power. In the 21st century, that same power lies in small chips and in the skills and materials associated with them. Chips are the digital diamonds of modern era," he said.
Pointing to the effect on global manufacturing, Modi said the pandemic exposed how vulnerable chip supply chains were. "We saw how fragile the global chip supply chain was. When disruptions occurred, factories across the world came to a halt, automobile production slowed, and electronics manufacturing was severely affected," he said, adding that India chose to treat the crisis as an opening. "We resolved to make India self-reliant in chip manufacturing and to build a trusted semiconductor supply chain for the world."
According to the PM, the Noida unit could act as an anchor for a wider technology cluster. "Wherever a semiconductor unit is established, design houses follow, R&D centres are set up, skill development institutions come up, and a start-up ecosystem develops. All of this is now going to happen in UP," he said.
He added that India was building hardware capacity alongside its established software strength. "India is known globally for its software strength. Now, we are adding hardware manufacturing at scale. We are moving ahead with speed and confidence under the India Semiconductor Mission," he said.
The PM also highlighted work on talent and technology depth. "We are preparing industry-ready professionals… expanding support for advanced packaging and research and development… creating a complete support system — from design to fabrication to assembly and testing."
Adityanath called the project a turning point for the state's industrial ambitions. "This is UP's first display driver semiconductor assembly and test unit. Under the PM's leadership, Jewar was transformed and a new chapter in high-technology manufacturing is being written here," he said.
The CM said reforms and infrastructure were helping attract investment: "Through transparency, trust-based governance and regulatory reforms, Uttar Pradesh is being established as a dream destination for investors."
Roshni Nadar Malhotra said the unit extended HCL's technology and manufacturing footprint in the state. "We are grateful to the govt of India and Uttar Pradesh for their unwavering support," she added.
For Young Liu, the venture aligned with Foxconn's localisation approach. "This joint venture is a great example of how we build, operate and localise in India. We are thankful to our partner HCL and privileged to be recognised by the govts of India and Uttar Pradesh for achieving this milestone," he said.
Shailendra Bhatia, additional CEO at YEIDA, said the unit would be the largest such manufacturing hub in north India. The facility would come up on a 48-acre site allotted in Jan this year.
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