The Union Cabinet of India has approved the establishment of a major semiconductor fabrication unit in the state of Uttar Pradesh, marking a significant step toward strengthening India's position in the global electronics and semiconductor industry. This strategic move is aimed at boosting domestic chip manufacturing capabilities and reducing reliance on imports.

Key Points

• The semiconductor unit will be set up in Greater Noida, a rapidly developing industrial hub in Uttar Pradesh.
• The project is expected to involve an investment of over Rs.75,000 crore (approximately $9 billion), making it one of the largest semiconductor initiatives in the country.
• It is likely to create thousands of direct and indirect jobs, giving a major boost to the local economy.
• The plant will be developed under a public-private partnership (PPP) model.
• It will be backed by central government incentives under the Semicon India Programme, along with support from the Uttar Pradesh government in the form of land, infrastructure, and logistics.

• Strategic Importance:

  • The semiconductor unit will play a critical role in enhancing India's self-reliance in chip manufacturing.
  • It aligns with the government’s Make in India and Digital India initiatives.
  • The facility will cater to various sectors including automotive, telecom, defence, medical electronics, and consumer goods.

• Skilling and R&D Support:
  To support the new unit, the government also plans to establish training and research centers nearby to ensure a steady pipeline of skilled professionals and foster innovation in chip design and production.

• International Collaboration:
  The unit is expected to involve foreign technology partners, bringing in expertise and cutting-edge technology. Talks are reportedly ongoing with major global semiconductor players from the US, Taiwan, and South Korea.