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Monday, February 23, 2026

INDIA BREAKS GROUND ON HCL-FOXCONN CHIP PLANT, SIGNALLING TECHADE AMBITIONS

Prime Minister Narendra Modi participated virtually in the groundbreaking of the HCL-Foxconn semiconductor unit in Uttar Pradesh, calling it a milestone in Indiaโ€™s journey toward becoming a global chip hub. Linking it to Viksit Bharat and the AI summit, he underscored self-reliance, supply chain resilience and Uttar Pradeshโ€™s industrial transformation.

A day after global leaders and technology giants gathered in New Delhi for the Global AI Impact Summit, Prime Minister Narendra Modi turned the spotlight from algorithms to atoms, from artificial intelligence to silicon wafers. Via video conferencing, he participated in the groundbreaking ceremony of the HCL-Foxconn Semiconductor Unit in Uttar Pradesh, describing it as a historic step in Indiaโ€™s march toward becoming a global semiconductor hub and a defining moment in what he has repeatedly called Indiaโ€™s โ€œTechade.โ€

The ceremony, though conducted virtually, carried unmistakable symbolism. In less than 24 hours, India moved from showcasing its artificial intelligence capabilities to laying the foundation of a semiconductor manufacturing facility. For the government, the message was clear: India does not intend to remain a software powerhouse alone; it aims to shape the hardware that powers the digital age. โ€œIndia has no time to stop or pause,โ€ Modi said, recalling his Independence Day address from the ramparts of the Red Fort. โ€œSince the beginning of 2026, India has accelerated its pace.โ€

The Prime Minister framed the event within a broader national momentum. He cited recent milestones such as the Viksit Bharat Young Leaders Dialogue, National Startup Day, and the India Energy Summit, portraying them as building blocks of a rapidly transforming India. He described the Union Budget for Viksit Bharat as having injected fresh momentum into the countryโ€™s development journey, calling the current week โ€œtruly historic.โ€ The semiconductor groundbreaking, he suggested, was not an isolated announcement but part of a carefully sequenced push toward technological leadership.

The project brings together HCL Technologies and Foxconnโ€™s semiconductor arm, a partnership that signals both domestic capacity and international collaboration. By thanking HCL Technologies Chairperson Roshni Nadar and Foxconn Semiconductor Business Group President Bob Chen, Modi underlined the strategic importance of industry partnerships in achieving Indiaโ€™s ambitions. Foxconnโ€™s participation, he said, sends a global message that democratic India is a trusted partner and a reliable node in global value chains.

Semiconductors have emerged as the lifeblood of modern economies. From smartphones and electric vehicles to defence systems and artificial intelligence servers, chips underpin almost every aspect of contemporary life. Modi drew a powerful comparison, describing chips in the 21st century as equivalent to oil in the 20th. He recalled how the COVID-19 pandemic exposed the fragility of global chip supply chains. When production halted and shipments stalled, industries across continents faltered. For India, the crisis was a wake-up call. The lesson, he said, was to convert vulnerability into opportunity by building domestic manufacturing capability.

The HCL-Foxconn facility in Uttar Pradesh represents a step toward that self-reliance. Modi described โ€œMade-in-Indiaโ€ chips as the backbone of Viksit Bharat, powering critical sectors ranging from AI and 6G to defence manufacturing and electric mobility. He emphasised that India is striving to stand alongside the worldโ€™s top nations in providing the processing power required to run the modern world, working simultaneously on software and hardware dimensions of technological growth.

Policy support is being aligned with industrial expansion. The Prime Minister highlighted the Chips to Startup initiative, aimed at training 85,000 specialists to strengthen the semiconductor ecosystem. He also referred to the second phase of the Semiconductor Mission and the establishment of Rare Earth Corridors to enable end-to-end research, development, and manufacturing. Together, these measures seek to ensure that Indiaโ€™s chip ambitions are not confined to assembly but extend across design, fabrication, and supply chain integration.

For Uttar Pradesh, the project marks another milestone in its industrial reinvention. As a Member of Parliament from the state, Modi expressed pride in its transformation. Once seen primarily through the lens of migration and law-and-order challenges, Uttar Pradesh is now being projected as a centre for expressways, defence corridors, and world-class infrastructure. The Prime Minister credited the โ€œDouble-Engine Governmentโ€ for driving coordinated development at the Centre and state levels.

The numbers, he argued, tell the story. Over the past 11 years, electronics manufacturing in India has grown six-fold. The mobile phone sector, in particular, has witnessed a 28-fold increase in domestic production and a 100-fold surge in exports. Uttar Pradesh accounts for more than half of all mobile phones manufactured in the country, making it a central pillar in Indiaโ€™s manufacturing rise. The addition of semiconductor fabrication capacity, the government believes, will deepen this ecosystem, attracting design houses, research centres, and startups while generating employment for the stateโ€™s youth.

Infrastructure has played a crucial role in this transformation narrative. Modi pointed to projects such as the Jewar International Airport and the Dedicated Freight Corridors as evidence of Uttar Pradeshโ€™s improved logistics backbone. He also announced that he would inaugurate the Delhi-Meerut Namo Bharat Train Corridor the following day, further strengthening connectivity. Efficient transport networks, the government argues, are essential to high-precision industries like semiconductor manufacturing, where time-sensitive supply chains and reliable power are critical.

The timing of the groundbreaking, coming immediately after the AI summit, underscores the governmentโ€™s integrated vision. Artificial intelligence requires massive processing power, and that power depends on chips. By linking the two events, the Prime Minister framed semiconductor manufacturing not as a standalone industrial project but as a foundational element of Indiaโ€™s digital future. Investments in green energy, space technology, digital platforms, and AI, he said, will define the 21st century, and semiconductors are central to each of these domains.

Foxconnโ€™s involvement adds a global dimension to the project. As one of the worldโ€™s largest electronics manufacturers, its decision to partner in India reflects confidence in the countryโ€™s policy environment and market potential. Modi described Indiaโ€™s participation in the global semiconductor value chain as enhancing resilience for all stakeholders, presenting it as a win-win proposition. In a world seeking diversified supply chains and reduced concentration risks, India is positioning itself as a stable, democratic alternative.

The road ahead, however, will demand sustained effort. Semiconductor manufacturing is capital-intensive, technologically complex, and globally competitive. Success will depend not only on factory construction but also on workforce skills, research capabilities, environmental sustainability, and consistent policy support. The Prime Ministerโ€™s emphasis on training 85,000 specialists signals recognition that human capital is as critical as infrastructure.

Yet the symbolism of the groundbreaking remains powerful. It reflects an aspiration to move up the value chain, from assembling imported components to producing the core elements that drive innovation. It signals that Indiaโ€™s development narrative is increasingly technology-led, blending digital ambition with manufacturing muscle.

As the ceremony concluded, Modi thanked the partners and reiterated that Indiaโ€™s progress contributes to global stability. By embedding itself deeper into high-tech supply chains, India aims not only to secure its own future but also to support a more resilient global economy. The HCL-Foxconn semiconductor unit may take years to reach full production, but its foundation stone represents a broader shift: Indiaโ€™s determination to shape, rather than merely consume, the technologies that define the modern world.


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