Government Green-Lights Semiconductor Plants in Odisha, Punjab, Andhra Pradesh

The Union cabinet approved semiconductor plant projects worth Rs 4,594 crore in a significant boost to India’s semiconductor manufacturing ambitions across Punjab, Odisha, and Andhra Pradesh, as per Business Today. Prime Minister Narendra Modi chaired the cabinet meeting that cleared four new manufacturing units across three states on Tuesday.

Historic Decision Under India Semiconductor Mission

The Union Cabinet approved four more semiconductor projects under the India Semiconductor Mission (ISM) with an investment of approximately 1.60 lakh crore in six states. This approval marks a huge achievement in India’s journey toward becoming a global semiconductor manufacturing hub.

India’s Semiconductor Mission continues to gain momentum with six previously approved projects already in various stages of execution. These new approvals bring the total investment commitment closer to the mission’s overall goal of establishing India as a key player in the global chip ecosystem.

Strategic State-Wise Distribution

The approved semiconductor plants in India will be strategically located across three major states. The government has approved four new semiconductor projects in Odisha, Punjab, and Andhra Pradesh with an estimated cost of 4,594 crore rupees.

This geographical spread ensures balanced regional development while leveraging each state’s unique industrial advantages. The distribution also helps create multiple semiconductor clusters across the country, reducing dependency on any single location.

These four proposals approved today are from SiCSem, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc., and Advanced System in Package (ASIP) Technologies. Each company brings specialized expertise to India’s growing semiconductor ecosystem.

SiCSem Private Limited, in collaboration with UK-based Clas-SiC Wafer Fab Ltd., will build India’s first silicon carbide fabrication unit. It will produce 60,000 wafers and 96 million packaged units each year for EVs, solar inverters, defense, and data centres.

3D Glass Solutions Inc. will set up an advanced packaging facility. It will make 69,600 glass panel substrates, 50 million assembled units, and 13,200 3D integration modules annually for defence, AI, high-performance computing, photonics, and automotive electronics.

In Andhra Pradesh, Advanced System in Package Technologies (ASIP), with South Korea’s APACT Co. Ltd., will set up a semiconductor unit with a 96 million unit annual capacity. It will supply mobile devices, set-top boxes, automotive electronics, and other consumer products.

In Punjab, Continental Device India Private Limited (CDIL) will expand its Mohali facility to produce 158.38 million high-power discrete semiconductors annually. These will include MOSFETs, IGBTs, Schottky bypass diodes, and transistors for EV systems, renewable energy, industrial use, and communication infrastructure.

ISM India Program Expansion

The ISM India program has been instrumental in attracting significant investments to the semiconductor sector. This substantial funding demonstrates the government’s commitment to building a robust semiconductor manufacturing ecosystem. The financial support helps companies establish innovative facilities that can compete globally.

The semiconductor investment in India through these four plants will create thousands of direct and indirect jobs. The semiconductor industry requires highly skilled workers, which will boost employment in engineering and technical fields.

These investments also have multiplier effects on the economy. Supporting industries, logistics, and services will benefit from the establishment of these manufacturing facilities.

The project aims to boost India’s role in the global semiconductor supply chain and support chip design growth. Government-funded infrastructure at 278 academic institutions and 72 start-ups has already trained over 60,000 students under the national talent development programme.