Greater Noida, February 21 The foundation of a developed India will be laid on the basis of self-reliance, for which having chips made in India is very important, Prime Minister Narendra Modi said on Saturday.
In a virtual address to lay the foundation stone of India Chip Pvt Ltd – the HCL Group and Foxconn joint venture – Modi said that a weak supply chain of tiny chips during the Covid-19 pandemic halted the development of several economies and stopped work at various factories.
"A developed India will only be built when India is self-reliant. For this, Made in India chips are very important. Whatever India is doing in the field of technology in this decade, it will become the foundation of our capability in the 21st century," Modi said.
He said that with chips being made in India, the country will not have to depend on others for manufacturing our modern equipment.
"During the Covid-19 pandemic, we saw how fragile the chip supply chain was. When chip supply was disrupted, factories stopped and economies faltered. India learned from that crisis and turned it into an opportunity. We decided to make India self-reliant in chip manufacturing. For this, we are building a semiconductor ecosystem in India," Modi said.
India Chip Pvt Ltd – the HCL Group and Foxconn joint venture for Outsourced Semiconductor Assembly & Test (OSAT) facility – will come up in the Yamuna Expressway Industrial Development Authority (YEIDA) at Jewar, Greater Noida.
This new factory of HCL and Foxconn will strengthen UP's identity as a technology powerhouse.
As a Member of Parliament from Uttar Pradesh, this is also a moment of great pride for me. This semiconductor factory will create large-scale employment opportunities for the youth of Uttar Pradesh and across India, Modi said.
The Prime Minister said that even though India started its journey in the semiconductor sector somewhat late, it is moving forward at great speed.
"In the 20th century, countries with oil had prosperity and power. In the 21st century, this power lies in the tiny chip, in the skills and materials connected to it," Modi said.
India Chip Pvt Ltd is a 60:40 joint venture between HCL Group and Foxconn. The advanced OSAT facility is expected to be operational by 2028. The company has earmarked an investment of Rs 3,700 crore over the next few years in the facility that will produce display driver chips.
The investment is expected to create over 3,500 direct and indirect jobs, build local supply chains, and attract ecosystem partners across the semiconductor value chain.
With a planned capacity to process 20,000 wafers per month, the facility aims to meet India's growing domestic demand for semiconductor components while strengthening a resilient, self-reliant semiconductor supply chain.
"In the last 11 years, the Prime Minister has established India as a powerhouse of electronics manufacturing. India is now ranked third among nations that export electronics. In a month, 3.6 crore chips will be produced from this plant. The brain of the digital screens that you see will now be made in Jewar," Union Electronics and IT Minister Ashwini Vaishnaw said.
UP Chief Minister Yogi Adityanath said that Jewar is emerging as a jewel not only for UP but also for the country. The development of UP will depend on the Prime Minister's vision for chips, he said.
"Today we are laying the foundation for India Chip. We want to establish a reliable semiconductor assembly and testing facility in India. We look forward to growing together and contributing to India's growth in the global technology landscape," Bob Chen, President, Semiconductor Business Group, Foxconn, said.
HCL Group Chairperson Roshini Nadar said the joint venture facility will cater to the requirements of both domestic and international markets.
