A Strategic Leap Forward: India’s Semiconductor Ambitions Get a Big Boost at Jewar

India’s journey to becoming a global semiconductor powerhouse received a significant shot in the arm with the recent announcement by Union Minister Ashwini Vaishnaw: a new semiconductor fabrication unit will be established near the upcoming Jewar airport in Uttar Pradesh’s Yamuna Expressway Industrial Development Authority (YEIDA) region. Approved by the Union Cabinet under the India Semiconductor Mission, this project is more than just another industrial venture—it is a declaration of India’s intent to secure its position in the high-tech global value chain, reduce dependence on foreign chipmakers, and lay the groundwork for technological self-reliance.

This development is a moment of triumph for the Make in India initiative. For decades, India’s technology sector has thrived on software exports while lagging significantly in high-end hardware manufacturing. That asymmetry made our economy vulnerable, especially as global semiconductor shortages exposed the fragility of supply chains during the COVID-19 pandemic. Semiconductors are the backbone of every modern digital device—from smartphones and electric vehicles to defence systems and AI processors. Establishing a domestic chip-making ecosystem is, therefore, not just an economic imperative but a strategic necessity.

A Well-Considered Choice of Location

The choice of YEIDA, near the rapidly developing Jewar airport, is a calculated and visionary decision. Jewar, being positioned in proximity to Delhi and embedded within the National Capital Region (NCR), offers a unique confluence of logistical advantages, skilled workforce availability, and access to premier academic and research institutions. Infrastructure development around Jewar is progressing at record pace—roads, connectivity, urban amenities, and the airport itself are turning this region into an industrial and logistics hub.

Moreover, YEIDA’s integration into the Delhi-Mumbai Industrial Corridor (DMIC) and its proximity to the Western Dedicated Freight Corridor give it a strategic advantage in terms of material movement, export readiness, and investor confidence. This is not just about building a factory; it is about engineering an ecosystem that attracts chip designers, testing units, packaging specialists, component manufacturers, and eventually, consumer electronics brands.

Strategic Autonomy Through Semiconductors

Semiconductors today are to the digital age what oil was to the 20th century—critical, strategic, and often contested. India’s over-reliance on imports (nearly $24 billion worth of semiconductors in 2023) has not only widened the trade deficit but has also left critical sectors—defence, telecom, and automotive—exposed to geopolitical risks. China’s dominance in chip packaging, Taiwan’s monopoly in advanced node fabrication, and the US’s strategic export controls underscore the need for diversification and de-risking.

This is precisely where India’s Semiconductor Mission comes in. With a budgetary outlay of ₹76,000 crore, the government is betting big on building a full-stack semiconductor ecosystem. The new unit at Jewar fits into this larger puzzle. It’s not an isolated move, but part of a broader strategy to enable India to become one of the top five semiconductor hubs in the world by 2030.

What This Means for UP and the Nation

Uttar Pradesh, often viewed through the lens of agrarian economics and legacy political debates, is being rapidly repositioned as a manufacturing and industrial growth engine. From mobile manufacturing in Noida to defence production corridors, the state is reaping the benefits of policy stability, improved law and order, and proactive governance. The semiconductor unit at Jewar will likely generate thousands of direct and indirect jobs, catalyze skill development, and attract global technology players.

Beyond employment and investment, this move also helps to geographically diversify India’s tech manufacturing base. Until now, southern states like Karnataka, Tamil Nadu, and Telangana have led the charge. With UP entering the fray, India can evolve a more distributed and resilient manufacturing network. This helps reduce regional inequalities and brings new growth opportunities to north India.

The spillover effects of a semiconductor unit are considerable. For every job created directly in a fab plant, studies suggest at least 5–6 ancillary jobs are created in logistics, security, hospitality, and other supporting sectors. Even more importantly, the presence of a high-tech facility often inspires educational institutions in the region to recalibrate curricula and produce industry-ready talent. This could lead to the emergence of a “Silicon Valley of the North” over the next decade.

Challenges Must Not Be Underestimated

Yet, ambition must be balanced with realism. Semiconductor manufacturing is an extremely complex, capital-intensive, and technologically sensitive process. Fabrication facilities (fabs) require a highly reliable electricity supply, ultrapure water, cleanroom environments, and massive investments in R&D. India’s power infrastructure and water security in certain regions, including parts of UP, need robust planning to support such demands.

Moreover, the semiconductor supply chain is a tangled global web involving equipment manufacturers, chemical suppliers, designers, and software vendors. Most of these capabilities currently reside in the US, Japan, Taiwan, South Korea, and the Netherlands. India will need to engage diplomatically and commercially with these countries to secure technology transfer, talent exchange, and supplier confidence.

Talent shortage is another hurdle. India’s engineering institutions produce millions of graduates, but very few with hands-on semiconductor experience. Bridging this gap will require targeted skilling programs, international collaborations, and the setting up of chip-design labs in universities. Otherwise, we may risk building infrastructure without the human capital to operate it effectively.

Staying the Course: Policy Continuity is Key

The semiconductor initiative is not a five-year plan—it’s a generational project. Countries like South Korea and Taiwan took decades to establish themselves as leaders in this field. India must demonstrate policy continuity, financial patience, and strategic discipline to stay the course.

Tax incentives, single-window clearances, and R&D subsidies must be sustained regardless of changes in political leadership. The role of the India Semiconductor Mission (ISM) as a nodal agency should be empowered further, with autonomy to attract global talent, fund research institutes, and form public-private partnerships.

A Decisive First Step Toward Tech Sovereignty

The Jewar semiconductor unit is a vital signal to global investors, Indian entrepreneurs, and our strategic partners: India is serious about becoming a global electronics and semiconductor manufacturing hub. While challenges abound—from infrastructure to talent to technology—this initiative is a defining moment in India’s industrial transformation.

It aligns with India’s aspiration to move from being the world’s back office to becoming a technology product powerhouse. It is an investment not just in a facility, but in a future where India owns its innovation, controls its supply chains, and leads the Fourth Industrial Revolution on its own terms.

Let us not see this as the culmination of a dream, but as the beginning of a national mission. The road ahead will be long, but if India walks it with vision, commitment, and clarity, the semiconductor age may well have an Indian signature.