Indian Cabinet approves 4 new semiconductor projects worth Rs 46 bn

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Indian Cabinet approves 4 new semiconductor projects worth Rs 46 bn

Indian Cabinet approves 4 new semiconductor projects worth Rs 46 bn

Industry News
Aug 13,25

India clears four semiconductor plants worth Rs 46 billion in Odisha, Punjab, and Andhra Pradesh, boosting defence, automotive, and electronics sectors under ISM.

Indian Cabinet approves 4 new semiconductor projects worth Rs 46 bn

New Delhi

The Union Cabinet chaired by Prime Minister Narendra Modi has sanctioned four additional semiconductor projects under the India Semiconductor Mission (ISM) with an outlay of Rs 46 billion. With six projects already in progress, the total now stands at 10 projects across six states, representing cumulative investments of about Rs 1.60 trillion.

The newly approved proposals—from SiCSem, Continental Device India Pvt Ltd (CDIL), 3D Glass Solutions Inc, and Advanced System in Package (ASIP) Technologies—will establish semiconductor facilities with a combined investment of Rs 46 billion. These projects are set to generate employment for 2,034 skilled professionals and numerous indirect jobs, enhancing India’s electronics manufacturing ecosystem.

Driven by the rising demand for semiconductors in telecom, automotive, data centres, consumer electronics, and industrial electronics, the new projects are poised to significantly advance the Atmanirbhar Bharat vision.

SiCSem and 3D Glass Solutions will be located in Odisha, CDIL in Punjab, and ASIP in Andhra Pradesh. SiCSem, in partnership with Clas-SiC Wafer Fab Ltd., UK, will create India’s first commercial Silicon Carbide (SiC) compound semiconductor facility in Info Valley, Bhubaneswar, with an annual capacity of 60,000 wafers and 96 million packaged units. The products will serve missiles, defence equipment, EVs, railways, fast chargers, data centre racks, appliances, and solar inverters.

3D Glass Solutions Inc. will set up a vertically integrated advanced packaging and embedded glass substrate unit, also in Bhubaneswar, introducing state-of-the-art packaging technology. The plant will produce 69,600 glass panel substrates, 50 million assembled units, and 13,200 3DHI modules annually for use in defence, high-performance computing, AI, RF, automotive, photonics, and co-packaged optics.

ASIP will establish a semiconductor unit in Andhra Pradesh in collaboration with APACT Co. Ltd., South Korea, producing 96 million units annually for mobile, automotive, and electronics applications.

CDIL will expand its discrete semiconductor manufacturing in Mohali, Punjab, producing MOSFETs, IGBTs, Schottky Bypass Diodes, and transistors in both Silicon and SiC, with an annual capacity of 158.38 million units. These will support EVs, renewable energy, industrial systems, and communications infrastructure.

These approvals mark a significant leap for India’s semiconductor ecosystem, incorporating the nation’s first commercial compound fab and a sophisticated glass-based packaging unit. They complement India’s expanding chip design capabilities, strengthened by government-backed design infrastructure for 278 academic institutions and 72 start-ups. Over 60,000 students have already benefitted from talent development programmes.

Industry reaction

Commenting on the approval of four new semiconductor projects, Dr Ajai Chowdhry, Founder of HCL, and Chairman of EPIC Foundation, said, "India's semiconductor sector is poised for a quantum leap with four key major project approvals SiCS, 3DGS, CDIL, and ASIP. It is good to see that we now will have compound semiconductor fab, which will cater to power sector needs and glass-based OSAT for display needs. Building on its strong chip design foundation, India is now set to turbocharge indigenous manufacturing cutting down on reliance on foreign imports. The projects will significantly cater to the growing demand for semiconductors in sectors like electric vehicles, renewable energy, and industrial applications. This gives great positioning to the country in semiconductor technology and a great decision like this is welcome. Under the visionary leadership of Honorable Minister Ashwini Vaishnav, India is poised to achieve technological sovereignty, realize the ‘Vikasit Bharat’ vision, and emerge as a key player in the global semiconductor landscape. We eagerly await this transformative journey."