₹4,600 Crore Outlay for Semiconductor Units in Odisha, Punjab & Andhra Approved

The Union Cabinet, led by PM Narendra Modi, has approved four semiconductor manufacturing projects under the India Semiconductor Mission (ISM) with an investment of ₹4,600 crore. 

The projects will be set up in Odisha, Punjab and Andhra Pradesh and are expected to generate 2,034 jobs, boosting India’s semiconductor industry. “Over the past 11 years, electronics manufacturing has grown almost six times. It has now become a ₹1 lakh crore industry in India, providing jobs to millions of people,” electronics and IT minister Ashwini Vaishnaw said in the briefing.

The four approved projects include facilities from SiCSem, Continental Device India Limited (CDIL), 3D Glass Solutions and Advanced System in Package (ASIP) Technologies. 

With these approvals, the total number of projects under ISM reaches 10, bringing cumulative investments to ₹1.6 lakh crore across six states. The new initiatives aim to cater to growing demands in telecom, automotive, data centres, consumer electronics, and industrial electronics.

The New Facilities and Technologies

SiCSem will establish a Silicon Carbide (SiC) based semiconductor manufacturing facility in Bhubaneswar, Odisha. This facility will be the first commercial compound semiconductor fab in India and is expected to have an annual capacity of 60,000 wafers and 96 million units of packaging. The products will serve sectors like defence, electric vehicles, solar power, and data centres.

3D Glass Solutions will also set up a packaging and embedded glass substrate unit in Bhubaneswar. This facility will bring advanced packaging technology to India, producing glass interposers and 3D Heterogeneous Integration (3DHI) modules. It will have a capacity of 69,600 glass panel substrates and 50 million assembled units annually, supporting industries such as defence, high-performance computing, and automotive.

ASIP Technologies, in partnership with APACT from South Korea, will establish a semiconductor manufacturing unit in Andhra Pradesh. This plant will produce 96 million units annually for applications in mobile phones, set-top boxes, and automobiles.

Lastly, CDIL will expand its semiconductor manufacturing facility in Mohali, Punjab, to produce high-power devices like Metal-Oxide-Semiconductor Field-Effect Transistors (MOSFETs) and Insulated Gate Bipolar Transistors (IGBTs). This expansion will enhance production capacity to 158.38 million units annually, supporting automotive electronics, renewable energy, and power conversion sectors.

India’s Goal of Self-Reliance

These developments will significantly contribute to India’s goal of becoming self-reliant in semiconductor manufacturing and further establish the country as a hub for advanced electronic manufacturing.

“Exports have increased eightfold. Electronics exports are now touching around 3 lakh crore,” Vaishnaw mentioned. He added that India’s semiconductor sector is rapidly expanding, with a projected need for one million skilled professionals by 2032. 

Since the programme’s launch, around 6,000 talents have been developed, and India is now designing chips as advanced as three nanometers. 

The country has also formed key collaborations with global leaders, including the US, the EU, Japan, South Korea, and institutions like the Fraunhofer-Gesellschaft institute and IBM. India is also moving towards self-reliance, with silicon carbide now produced locally, he emphasised.