India Greenlights ₹4,594 Crore Investment for Four Semiconductor Projects Across Three States

In a major push to strengthen India’s semiconductor manufacturing ecosystem, the Union Cabinet has approved four new semiconductor projects with a combined investment of ₹4,594 crore. The announcement, made by Information and Technology Minister Ashwini Vaishnaw on August 12, 2025, marks a strategic leap in India’s ambition to become a global hub for chip fabrication and advanced packaging technologies.

The projects will be set up in Odisha, Punjab, and Andhra Pradesh, and are expected to generate over 2,000 skilled jobs while catalyzing innovation across sectors such as defence, mobility, computing, and renewable energy.

Key Developments And Strategic Significance

- Two projects will be established in Odisha, one in Punjab, and one in Andhra Pradesh  
- The initiative is part of the India Semiconductor Mission, aimed at building a resilient and self-reliant chip ecosystem  
- The approved projects include India’s first commercial compound semiconductor fab and a cutting-edge 3D glass packaging unit  
- The investment is expected to complement India’s growing chip design capabilities and support its goal of technological sovereignty  

Project-Wise Breakdown And Technological Scope

1. SiCSem Pvt Ltd – Bhubaneswar, Odisha  
   - Will set up India’s first compound semiconductor fabrication unit  
   - In collaboration with UK’s Clas-SiC Wafer Fab Ltd  
   - Annual capacity: 60,000 wafers and 96 million packaged units  
   - Applications: defence, electric vehicles, railways, data centers, and renewable energy  

2. 3D Glass Solutions Inc. – Bhubaneswar, Odisha  
   - Will introduce advanced 3D packaging technology for high-performance computing  
   - Products include glass interposers, silicon bridges, and heterogeneous integration modules  
   - Target sectors: aerospace, photonics, AI, radar systems, and wireless infrastructure  

3. Continental Device India Pvt Ltd (CDIL) – Mohali, Punjab  
   - Will expand its existing facility to manufacture high-power semiconductor devices  
   - Product range: MOSFETs, IGBTs, Schottky diodes  
   - Annual output: over 158 million units  
   - Partnering with a Korean firm for technology transfer and device specialization  

4. Advanced System in Package Technologies Pvt Ltd (ASIP) – Andhra Pradesh  
   - Will establish a semiconductor packaging facility in collaboration with South Korea’s APACT Co. Ltd  
   - Annual capacity: 96 million units  
   - End-use: mobile devices, automotive electronics, consumer appliances  

Employment And Ecosystem Impact

- The four projects are expected to create 2,034 direct skilled jobs  
- Thousands of indirect jobs will be generated across supply chains, logistics, and ancillary services  
- The projects will stimulate local economies and foster regional innovation clusters  
- Academic institutions and startups will benefit from expanded design infrastructure and collaborative R&D  

Policy Alignment And National Vision

- The approvals align with the ₹76,000 crore Semicon India Programme launched in 2021  
- Fiscal incentives under the programme support fabs, display units, compound semiconductors, and design-linked initiatives  
- India now has 10 approved semiconductor projects across six states, with total planned investments exceeding ₹1.60 lakh crore  
- The government aims to reduce import dependency and position India as a trusted global partner in chip manufacturing  

Outlook And Industry Response

The semiconductor industry has welcomed the Cabinet’s decision, citing it as a timely intervention to address global supply chain vulnerabilities and domestic demand surges. With strategic partnerships, advanced technologies, and policy support converging, India is poised to accelerate its journey toward becoming a semiconductor powerhouse.

Sources: The Hindu, Moneycontrol, News18.