The new plant will be set up near Jewar Airport in the Yamuna Expressway Industrial Development Authority (YEIDA) region.
- It’s a Joint venture between HCL and Foxconn
- Focus: Manufacturing display driver chips for Mobile phones, Laptops, Automobiles, etc.
India’s Growing Semiconductor Ecosystem
- Expanding Market Size: India’s semiconductor market is expected to grow from $22 billion in 2019 to $110 billion by 2030 (10% of global consumption)
- Increasing Local Sourcing: Only 9% of semiconductor components were locally sourced in 2021. The goal is to increase it to 17% by 2026.
- Robust R&D and Design: India has ~20% of the world’s semiconductor design engineers & designs ~3,000 integrated circuits (ICs) annually.
- Node Shrinking: Technology nodes (e.g., 7 nanometers (nm), 5nm, 3nm, 2nm) refer to the process technology used to fabricate chips. Smaller nodes generally allow:
- Higher transistor density
- Lower power consumption
- Faster processing speeds
Reasons for India to Prioritize Semiconductor Ecosystem
- Reducing Trade Deficit and Supply Chain Dependence: India imported Rs 1.71 lakh crore in semiconductors in 2024 & ~38% of total chip imports came from China.
- Economic Multipliers: Each semiconductor job could support up to 16 others (16X).
- Spillover and “Learning-by-Doing” Effects: Enhances capabilities in adjacent high-tech areas such as robotics, precision tools, and advanced electronics.