Union Cabinet clears ₹4,600-crore semiconductor projects in Odisha, Punjab and Andhra Pradesh

THEBUSINESSBYTES BUREAU

NEW DELHI, AUGUST 12, 2025

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved four major semiconductor manufacturing projects under the India Semiconductor Mission (ISM), marking a fresh push towards strengthening the nation’s chip-making capabilities. With a combined investment of around ₹4,600 crore, these units are set to come up in Odisha, Punjab, and Andhra Pradesh, generating direct employment for 2,034 skilled professionals and creating a wave of indirect job opportunities across the electronics manufacturing ecosystem.

The new approvals have been granted to SiCSem, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc., and Advanced System in Package (ASIP) Technologies. They add to the six semiconductor projects already underway, taking the total number of ISM-approved facilities to 10, with cumulative investments now touching ₹1.60 lakh crore across six states.

Given the surging demand for semiconductors in telecom, automotive, data centres, consumer electronics, and industrial applications, these projects are poised to play a pivotal role in advancing India’s goal of self-reliance in electronics manufacturing.

Two of the newly approved facilities — by SiCSem and 3D Glass Solutions — will be established in Odisha’s Info Valley, Bhubaneswar. SiCSem, in collaboration with UK-based Clas-SiC Wafer Fab Ltd., will set up India’s first commercial compound semiconductor fabrication plant dedicated to Silicon Carbide (SiC) devices. Designed with an annual capacity of 60,000 wafers and packaging capability of 96 million units, the fab will cater to applications in defence, electric mobility, renewable energy, and high-efficiency power electronics.

3D Glass Solutions will bring advanced semiconductor packaging technology to India, including glass interposers, silicon bridges, and 3D Heterogeneous Integration (3DHI) modules. With a planned annual capacity of 69,600 glass panel substrates, 50 million assembled units, and 13,200 3DHI modules, the facility will target high-performance computing, AI, photonics, RF systems, and defence-grade applications.

In Andhra Pradesh, ASIP Technologies, in partnership with South Korea’s APACT Co. Ltd., will set up a packaging facility capable of producing 96 million semiconductor units annually for use in mobile phones, set-top boxes, automotive electronics, and consumer devices.

Punjab will see CDIL expand its Mohali-based plant to produce high-power discrete semiconductors, including MOSFETs, IGBTs, Schottky bypass diodes, and silicon carbide transistors. The expansion, with an annual capacity of over 158 million units, will cater to electric vehicles, renewable energy systems, industrial automation, and advanced communication infrastructure.

These projects represent a significant leap forward for India’s semiconductor ambitions, introducing the country’s first commercial compound fab and a highly advanced glass-based substrate packaging facility. They will also complement the growing chip design capabilities nurtured through government-backed initiatives that have already supported 278 academic institutions, 72 start-ups, and over 60,000 students under talent development programs.

With the latest approvals, India is positioning itself as a competitive force in the global semiconductor supply chain, aiming to meet domestic needs while emerging as a trusted partner in advanced electronics manufacturing.