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India Approves ₹4,600 Crore Semiconductor Units, Marking Milestone in Advanced Chip Manufacturing

3 weeks ago
TheDialog
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India’s push to become a global semiconductor hub gained fresh momentum on 12 August as the Union Cabinet, chaired by Prime Minister Narendra Modi, cleared four new manufacturing projects under the India Semiconductor Mission (ISM), with a combined investment of approximately ₹4,600 crore.

 

The approvals — granted to SiCSem, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc., and Advanced System in Package (ASIP) Technologies — bring the total sanctioned projects under ISM to 10, with cumulative investments now touching ₹1.60 lakh crore across six states.

 

Officials say the new units are expected to create over 2,000 direct high-skilled jobs and catalyse thousands of indirect employment opportunities in India’s fast-growing electronics manufacturing ecosystem.

 

Pioneering Facilities Across Three States

 

The four projects will be strategically located in Odisha, Punjab, and Andhra Pradesh, targeting both advanced chip fabrication and next-generation packaging.

 

Odisha: First Commercial Compound Fab & Advanced Packaging Plant
SiCSem, in collaboration with Clas-SiC Wafer Fab Ltd., UK, will establish India’s first commercial Silicon Carbide (SiC) compound semiconductor fabrication facility in Info Valley, Bhubaneswar. With a planned capacity of 60,000 wafers and 96 million packaged units annually, the fab will produce high-performance devices used in defence systems, electric vehicles, railways, data centres, solar inverters, and fast-charging infrastructure.

 

Alongside it, US-based 3D Glass Solutions Inc. (3DGS) will set up a vertically integrated advanced packaging and embedded glass substrate unit, also in Bhubaneswar. The facility will incorporate cutting-edge 3D Heterogeneous Integration (3DHI) and glass interposer technologies, producing 69,600 glass panel substrates, 50 million assembled units, and 13,200 3DHI modules annually, with applications spanning AI, photonics, high-performance computing, and automotive electronics.

 

Andhra Pradesh: Advanced Packaging for Consumer and Automotive Electronics
ASIP Technologies, partnering with APACT Co. Ltd., South Korea, will develop a semiconductor manufacturing unit with an annual capacity of 96 million units, targeting mobile devices, set-top boxes, automotive systems, and consumer electronics.

 

Punjab: Expanding High-Power Discrete Semiconductor Production
Mohali-based Continental Device India Limited (CDIL) will expand its existing facility to produce 158 million units of high-power discrete devices — including MOSFETs, IGBTs, and Schottky diodes — in both silicon and silicon carbide, aimed at EV infrastructure, renewable energy, industrial power conversion, and telecom equipment.

 

Strengthening Atmanirbhar Bharat in Critical Tech

 

With demand for semiconductors surging in telecom, automotive, consumer electronics, industrial automation, and defence, the government says these approvals mark a critical step towards achieving self-reliance in high-tech manufacturing.

 

In addition to boosting India’s fabrication and packaging capacity, these projects will complement the country’s chip design ecosystem, which already benefits from government-backed infrastructure in 278 academic institutions and 72 start-ups. Over 60,000 students have been trained under national semiconductor talent programmes.

 

Global Collaboration and India’s Semiconductor Journey

 

India’s semiconductor roadmap is also being shaped by strategic international collaborations. A recent example was the 7th Fraunhofer Innovation and Technology (FIT) Platform, held in New Delhi on 31 July 2025. Organised by Fraunhofer-Gesellschaft with the support of the Ministry of Electronics & Information Technology (MeitY), the forum brought together Indian and German policymakers, industry leaders, and researchers to explore joint R&D, manufacturing partnerships, and supply chain resilience in semiconductors and microelectronics.

 

The Cabinet’s decision signals a decisive leap in India’s semiconductor journey — from design leadership to domestic manufacturing strength. By combining cutting-edge fabrication, advanced packaging, and a skilled talent pipeline, India is positioning itself to meet rising domestic demand, reduce import dependency, and secure a competitive edge in the global technology value chain — firmly on its own terms.

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