The Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval for the establishment of four new semiconductor manufacturing projects under the India Semiconductor Mission (ISM). These projects, with a combined investment of approximately Rs. 4,600 crore (US$ 524.93 million), mark a significant expansion of India’s semiconductor capabilities, aligning with the country’s vision of Atmanirbhar Bharat and technological self-reliance.

The new projects will be set up by SiCSem, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc., and Advanced System in Package (ASIP) Technologies. With these additions, the total number of approved semiconductor projects under ISM now stands at 10, with cumulative investments reaching around Rs. 1.60 lakh crore (US$ 18.26 billion) spread across six states.

The approved facilities are projected to generate 2,034 skilled jobs directly, in addition to a large number of indirect employment opportunities within the electronics manufacturing ecosystem. The new plants are expected to cater to the growing demand for semiconductors across sectors including telecom, automotive, data centres, consumer electronics, industrial electronics, defence, electric vehicles (EVs), renewable energy systems, and mobile phones.

One of the key highlights of these approvals is the country’s first commercial compound fab, alongside a state-of-the-art glass-based substrate semiconductor packaging unit. These advanced facilities are expected to strengthen India’s position in the global semiconductor supply chain.

Details of the Approved Projects

1. SiCSem – Bhubaneshwar, Odisha
   SiCSem, in collaboration with Clas-SiC Wafer Fab Ltd., UK, will develop an integrated facility for Silicon Carbide (SiC) based compound semiconductors. The plant will have an annual capacity of 60,000 wafers and 96 million units of packaging. The facility is designed to cater to high-performance and high-reliability applications, especially in sectors such as EVs, renewable energy, and industrial electronics.

2. 3D Glass Solutions Inc. – Bhubaneshwar, Odisha
   This project will set up a vertically integrated advanced packaging and embedded glass substrate unit. It will bring cutting-edge glass-based semiconductor packaging technology to India, enhancing domestic capabilities in chip packaging and improving the supply chain resilience for high-tech manufacturing.

3. Continental Device India Private Limited (CDIL) – Mohali, Punjab
   CDIL will expand its existing discrete semiconductor manufacturing facility, boosting its annual capacity to 158.38 million units. This expansion will allow the company to meet the growing domestic and export demand for discrete semiconductors used in electronics, automotive, and industrial applications.

4. Advanced System in Package Technologies (ASIP) – Andhra Pradesh
   ASIP Technologies, in collaboration with APACT Co. Ltd., South Korea, will set up a new semiconductor manufacturing unit with an annual capacity of 96 million units. This facility will focus on advanced packaging technologies, further bolstering India’s chip production ecosystem.

Strategic Importance of the Projects

The semiconductor industry is a critical component of modern technology infrastructure, powering everything from smartphones and computers to electric vehicles and defence systems. By establishing advanced semiconductor manufacturing facilities, India aims to:

• Reduce dependency on imports for critical components.

• Strengthen its position as a reliable global supplier in the semiconductor supply chain.

• Create a robust ecosystem for R&D, manufacturing, and skilled workforce development in the electronics sector.

These projects are expected to significantly contribute to India’s economic growth, job creation, and technological advancement. They also align with the Digital India initiative, ensuring that the country can meet both domestic and global demand for cutting-edge semiconductor solutions.

With global supply chains facing challenges, the move to expand domestic production is seen as both timely and strategic. Analysts believe that these investments will not only enhance India’s semiconductor capabilities but will also attract further foreign investments into the high-tech manufacturing sector.

In the coming years, these projects are expected to catalyse the development of semiconductor clusters, encourage ancillary industries, and pave the way for India to become a global semiconductor hub.

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