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Pakistan’s first chip manufacturing unit to be set up in Faisalabad

Published on: January 2, 2026 9:55 AM

Pakistan’s first computer chip manufacturing unit will be established in Faisalabad, Provincial Minister for Industries, Commerce and Investment Chaudhary Shafay Hussain announced on Wednesday. He said land for the project has been identified, marking a significant step towards technological industrialisation.

Addressing the business community at the Faisalabad Chamber of Commerce and Industry, the minister said the government had also allocated 50 acres in the M-3 Industrial Estate for a modern expo centre. The facility is expected to promote trade and industrial exhibitions at the national and international level.

Read More: Pakistan’s Chip Dreams Need Schedules, Not Slogans 

According to the minister, the proposed chip-making unit will support mobile phone assembling plants already operating in Faisalabad, Karachi and Lahore. He said the project would strengthen the local electronics industry and reduce reliance on imported components.

Mr Hussain said the government was taking key decisions to accelerate the development and colonisation of the M-3 and Allama Iqbal industrial estates. He added that infrastructure and security arrangements were being improved to facilitate both local and foreign investors.

As part of these measures, a community centre, boundary wall and a monitoring cell will be established for foreign workers employed in the industrial estates. Banking and commercial facilities are also being introduced to ease operations for industrial units.

The minister said the Punjab government had launched initiatives to enhance cotton production through research and development of high-yield, disease-resistant seeds. Infrastructure issues at the Small Industrial Estate in Faisalabad were also being addressed, he added.

He further announced that interest-free loans were being offered under the Asan Karobar Scheme to promote small businesses. In addition, women training centres would be set up in Gujrat, Layyah and Sahiwal during 2026, with Faisalabad included in the second phase.

Read More: Pakistan’s silicon dream: $4.5 Billion plan to lead in semiconductors AI

FCCI President Farooq Yousaf Sheikh welcomed the initiatives but highlighted challenges faced by exporters, including high energy costs, delayed refunds and regulatory hurdles. He said exports could reach $100 billion if consistent policies and a supportive business environment were ensured.

Filed Under: Pakistan Tagged With: chip manufacturing, Exports, Faisalabad, industrial development, Latest, Lead4, Punjab government, technology sector

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