The Union Cabinet of India, under the leadership of Prime Minister Narendra Modi, recently approved four new semiconductor manufacturing projects within the framework of the India Semiconductor Mission (ISM), marking a significant step in India’s ambition to become a global semiconductor hub.

This approval, announced on August 12, 2025, raises the total number of sanctioned semiconductor projects under ISM to 10, spanning six different states, with cumulative investment commitments reaching around ₹1.60 lakh crore (approximately US$18.23 billion).

The new projects are set to be established in the states of Odisha, Punjab, and Andhra Pradesh, with Odisha hosting two of these projects.

The four newly approved projects involve major investments totalling approximately ₹4,600 crore (US$524 million) and are expected to generate direct employment for over 2,000 skilled professionals, alongside creating numerous indirect jobs across the electronics manufacturing ecosystem.

These projects represent substantial technological advancements in India’s semiconductor capabilities, including the country’s first commercial compound semiconductor fabrication facility by SiCSem in collaboration with the UK’s Clas-SiC Wafer Fab Ltd., located in Bhubaneswar’s Info Valley, Odisha.

This compound semiconductor fab will manufacture Silicon Carbide (SiC) devices, crucial for applications across defence, electric vehicles (EVs), railways, fast chargers, data centres, consumer appliances, and solar power inverters. It will have an annual production capacity of 60,000 wafers and 96 million packaged units.

Another highlighted project is by 3D Glass Solutions Inc., also based in Odisha, which will establish a high-tech facility for advanced semiconductor packaging and embedded glass substrates, introducing world-leading packaging technology to India with an annual capacity to handle 69,600 glass panel substrates, 50 million assembled units, and 13,200 advanced modules.

These products will cater to industries such as defence, artificial intelligence, high-performance computing, automotive, photonics, and communication systems.

The Punjab project involves Continental Device India Pvt. Ltd. (CDIL), which is expanding its facilities to produce high-power devices like MOSFETs and IGBTs, supporting sectors such as automotive electronics, renewable energy, and power conversion technologies.

Andhra Pradesh will host a manufacturing unit by ASIP Technologies, in partnership with South Korea’s APACT Co. Ltd., focusing on producing semiconductor components for mobile phones, set-top boxes, and automotive applications.

These four projects strengthen the semiconductor ecosystem in India, complementing six previously approved projects that include advanced semiconductor fabs, ATMP (assembly, testing, marking, and packaging) units, and display fabs across states like Gujarat, Assam, Uttar Pradesh, and others.

Notable previously approved projects include large-scale fabs by TATA Electronics in Gujarat, and assembly and packaging facilities by companies such as Kaynes Semicon.

The government’s initiatives are aligned with growing semiconductor demand in telecom, automotive, data centres, consumer electronics, and industrial electronics sectors. The ISM is fostering an environment of Atmanirbhar Bharat (self-reliant India) by boosting local production capacity, enhancing chip design capabilities supported by hundreds of academic institutions and start-ups, and encouraging global industry partnerships. The mission’s holistic approach includes talent development, with India currently producing nearly 20% of the global semiconductor workforce.

The addition of these four new semiconductor projects, the India Semiconductor Mission now embraces a total of 10 projects across six states, reflecting a massive cumulative investment commitment of around ₹1.60 lakh crore.

These projects are expected to significantly bolster India’s semiconductor manufacturing footprint, generate thousands of skilled jobs, enhance technological capabilities in next-generation chip fabrication and packaging, and position India as a competitive player in the global semiconductor value chain, serving both domestic and export markets.

This progress underscores the government’s strategic focus on fostering a vibrant and sustainable semiconductor ecosystem in India, driven by strong policy support, international collaborations, and growing industrial momentum.

IDN (With Agency Inputs)