In a significant push to bolster India’s semiconductor manufacturing capabilities, the Union Cabinet has approved funding worth ₹4,600 crore for four new semiconductor projects under the India Semiconductor Mission (ISM). The projects will be set up in Odisha, Punjab, and Andhra Pradesh, adding to the country’s growing network of semiconductor facilities and bringing the total number of approved projects under ISM to 10, spread across six states with a cumulative investment commitment of over ₹1.6 lakh crore.
The newly approved projects are spearheaded by SiCSem, Continental Device India Ltd. (CDIL), 3D Glass Solutions Inc., and ASIP Technologies. Each company will contribute its niche expertise to strengthen different aspects of India’s semiconductor ecosystem, from chip manufacturing to advanced packaging and glass substrate capabilities.
Boosting Strategic Sectors
The government’s latest decision aligns with its broader vision to make India a global hub for semiconductor production—a critical component in today’s technology-driven world. These new facilities will cater to a range of industries, including defence, electric vehicles (EVs), artificial intelligence (AI), telecommunications, and consumer electronics. By building a robust domestic chip manufacturing infrastructure, India aims to reduce its dependence on imports and ensure a reliable supply of chips for strategic sectors.
Project Details and Focus Areas
- SiCSem will focus on silicon carbide-based semiconductors, which are increasingly vital for high-efficiency power electronics, especially in EVs and renewable energy applications.
- CDIL, a veteran in the Indian semiconductor industry, will expand its capabilities to serve automotive, industrial, and consumer electronics markets.
- 3D Glass Solutions Inc. will bring cutting-edge glass substrate technology to India, supporting advanced packaging solutions required for next-generation high-performance chips.
- ASIP Technologies will work on assembling, testing, and packaging semiconductor devices, enhancing India’s role in the global semiconductor value chain.
Economic Impact and Employment Generation
According to the government, these projects are expected to create thousands of direct and indirect jobs, ranging from high-tech engineering roles to ancillary support functions. The investments will also spur the growth of related industries such as equipment manufacturing, logistics, and R&D services.
The ₹4,600 crore government support will be provided in the form of capital assistance, under the ISM’s objective to attract global and domestic players by covering up to 50% of project costs for eligible proposals. This financial backing is designed to encourage private investment, accelerate project timelines, and ensure world-class infrastructure.
India’s Growing Semiconductor Footprint
With these approvals, India now has a total of 10 semiconductor fabrication, assembly, and packaging projects under development, spanning states such as Gujarat, Maharashtra, Karnataka, Odisha, Punjab, and Andhra Pradesh. The combined investment of ₹1.6 lakh crore reflects both the scale of the government’s ambition and the growing confidence of global semiconductor players in India’s potential.
Industry experts believe that these projects, once operational, will significantly enhance India’s technological sovereignty, position the country as a competitive semiconductor hub, and contribute to the global supply chain resilience.
The Cabinet’s decision marks another milestone in India’s journey to becoming a key player in the global semiconductor landscape—an essential step in powering the nation’s digital future.
