PM Modi lays foundation stone for HCL-Foxconn semiconductor unit in UP as India deepens chip manufacturing push

Prime Minister Narendra Modi on Saturday laid the foundation stone for a new semiconductor manufacturing unit being built by an HCL-Foxconn joint venture in Uttar Pradesh, as India intensifies efforts to expand its domestic chip industry.

Addressing workers, executives, and local leaders virtually at the ceremony, Modi said the project will create jobs, boost investment, and strengthen India’s technology ecosystem, a key priority for New Delhi as global demand for semiconductors continues to soar. “This unit will not only create hundreds of jobs, but also lead to greater self-reliance in semiconductor design and manufacturing,” he said.

Chips, jobs and strategic goals

The new facility—a collaboration between India’s HCL Technologies and Taiwan’s Foxconn—marks a significant step in India’s bid to become a major player in the global semiconductor supply chain. Officials say the plant will produce advanced chips required for everything from smartphones and consumer electronics to automobiles and defence systems.

Modi reiterated the importance of building a strong tech manufacturing base in India. “Semiconductors are the backbone of modern technology. By producing them here, we reduce imports and empower our youth with high-quality jobs,” he said.

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The prime minister highlighted that the centre will help broaden opportunities for skilled workers in the region, fostering innovation and local economic growth. Industry analysts say such investments are crucial for India to compete with traditional chip-making powerhouses like Taiwan, South Korea, and the United States.

Local impact and future prospects

The project is expected to generate employment not just within the chip facility, but also across supporting sectors, including logistics, services, and research. Local officials welcomed the announcement, saying the investment could transform Uttar Pradesh’s technology landscape and inspire further high-tech development in the state.

Foxconn representatives emphasised that the venture aligns with global trends toward diversification of semiconductor production, a shift accelerated by supply-chain disruptions during the pandemic and geopolitical competition for technological leadership.

The foundation-stone event comes as part of India’s broader semiconductor strategy, which includes incentives for manufacturing, research and development support, and tie-ups with global firms. Modi has repeatedly stressed the need to build a robust tech ecosystem that can support both local demand and international export opportunities.