Introduction
India has taken another decisive step in its journey toward semiconductor self-reliance. On August 12, 2025, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved four new semiconductor manufacturing projects in Odisha, Punjab, and Andhra Pradesh, with a total investment of around ₹4,600 crore in India.
These projects, under the India Semiconductor Mission (ISM), will strengthen the country’s electronics manufacturing ecosystem, create over 2,000 skilled jobs, and position India in high-value segments like compound semiconductors and advanced packaging technologies.
This marks a significant milestone for the country’s semiconductor ambitions — not just in terms of quantity but in the complexity and diversity of technologies being brought to Indian soil.
Quick Overview – Key Points
Four projects approved in Odisha, Punjab, and Andhra Pradesh under ISM.
₹4,600 crore investment expected, with over 2,000 direct jobs created.
Facilities will focus on SiC compound semiconductors, glass-based advanced packaging, and high-power discrete devices.
Partnerships with UK and South Korean companies to bring cutting-edge manufacturing to India.
Total semiconductor projects under ISM now at 10 projects across six states, worth around ₹1.6 lakh crore.
/techovedas.com/4-powerful-schemes-propelling-indias-semiconductor-revolution
India’s Semiconductor Push – A Background
The India Semiconductor Mission (ISM) was launched in December 2021 as part of a ₹76,000 crore incentive scheme to boost domestic semiconductor manufacturing, chip design, and talent development.
Why this matters:
- Global semiconductor demand is projected to reach $1 trillion by 2030 (McKinsey).
- Geopolitical tensions and supply chain disruptions have made domestic manufacturing a strategic necessity.
- India currently imports almost 100% of its semiconductors, exposing industries like automotive, telecom, and consumer electronics to supply risks.
With this latest approval, India now has 10 sanctioned semiconductor projects — spanning fabrication, assembly, testing, and advanced packaging — across six states.
Project 1 – SiCSem Private Limited (Odisha)
Location: Info Valley, Bhubaneswar
Partner: Clas-SiC Wafer Fab Ltd., UK
- First-of-its-kind commercial Silicon Carbide (SiC) compound semiconductor fab in India.
- Annual capacity: 60,000 wafers and packaging for 96 million units.
- Applications: Electric vehicles (EVs), rail systems, solar inverters, fast chargers, defense electronics, consumer appliances.
- Why important: SiC devices handle higher voltages and temperatures than traditional silicon chips, making them essential for EV and renewable energy sectors.
Project 2 – 3D Glass Solutions Inc. (Odisha)
Location: Info Valley, Bhubaneswar
Setting up a vertically integrated advanced packaging & embedded glass substrate unit.
- Annual output:
- 69,600 glass panel substrates
- 50 million assembled units
- 13,200 3D Heterogeneous Integration (3DHI) modules
- Technologies: Glass interposers with embedded passives, silicon bridges, 3DHI modules.
- Applications: High-performance computing, AI, photonics, automotive, and defense.
- Why important: Glass-based packaging improves signal speed, reduces power loss, and enables more compact high-performance chips — a key for AI servers and next-gen electronics.
Project 3 – Advanced System in Package (ASIP) Technologies (Andhra Pradesh)
Location: Andhra Pradesh
Partner: APACT Co. Ltd., South Korea
- Semiconductor assembly & packaging facility with annual capacity of 96 million units.
- Target sectors: Mobile devices, set-top boxes, automotive electronics, consumer electronics.
- Why important: System-in-Package (SiP) technology integrates multiple chips into a single module, improving performance and reducing size — essential for IoT and compact electronics.
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Project 4 – Continental Device India Limited (CDIL) Expansion (Punjab)
📍 Location: Mohali, Punjab
- Brownfield expansion of existing facility.
- Focus on high-power discrete semiconductor devices: MOSFETs, IGBTs, Schottky diodes, transistors.
- Materials: Silicon and Silicon Carbide.
- Annual output: 158.38 million units.
- Applications: EVs, renewable energy, industrial power systems, communication infrastructure.
techovedas.com/cdil-becomes-first-indian-company-to-produce-sic-devices
Investment and Economic Impact
| Project | Location | Investment (₹ crore) | Jobs Created | Technology Focus |
|---|---|---|---|---|
| SiCSem Pvt. Ltd. | Odisha | ~1,500 | 500+ | SiC Compound Semiconductor Fab |
| 3D Glass Solutions Inc. | Odisha | ~1,200 | 400+ | Glass-based Advanced Packaging |
| ASIP Technologies | Andhra Pradesh | ~1,000 | 500+ | System-in-Package Assembly |
| CDIL Expansion | Punjab | ~900 | 600+ | High-power Discrete Devices |
Total: ₹4,600 crore investment, 2,000+ direct jobs, thousands of indirect opportunities in supply chains, logistics, and services.
Building the Semiconductor Talent Base
The government is not just investing in infrastructure but also in human capital:
- 278 academic institutions and 72 startups supported with chip design infrastructure.
- 60,000+ students trained in semiconductor design and manufacturing skills.
- Focus on specialized skills in compound semiconductors, advanced packaging, and heterogeneous integration.
https://medium.com/p/76fc9e36cce3
Strategic Significance
These projects go beyond basic chip assembly. They target niche, high-growth areas where India can leapfrog rather than compete head-on with established silicon fabs in Taiwan or South Korea:
- Compound semiconductors (SiC, GaN) for EVs and power electronics.
- Glass-based advanced packaging for AI and HPC applications.
- System-in-Package for miniaturization and IoT.
By localizing these technologies, India can reduce its $20+ billion annual semiconductor import bill and position itself as a key player in the global supply chain.
Global Context
Countries like the US, Japan, South Korea, and EU nations are also investing billions in semiconductor sovereignty:
- US CHIPS Act: $52 billion in incentives.
- EU Chips Act: €43 billion in public and private investments.
- Japan: $6.8 billion support for domestic fabs.
India’s latest move shows it is not just catching up but also diversifying into specialized areas that complement global supply chains.
Conclusion
The approval of these four semiconductor projects in Odisha, Punjab, and Andhra Pradesh marks a pivotal moment in India’s tech manufacturing journey.
By embracing cutting-edge materials like Silicon Carbide and innovative packaging like embedded glass substrates, India is signaling that it aims to be more than just an assembler — it wants to be a global innovation hub. Do you think India can become a global chip manufacturing hub by 2030?
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