Cabinet Approves Four New Semiconductor Projects Worth ₹4,600 Crore Under ISM

India’s semiconductor demand is growing rapidly, driven by sectors such as telecom, automotive, data centres, consumer electronics, and industrial electronics.

In a significant push to strengthen India’s semiconductor manufacturing capabilities, the Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved four new semiconductor projects under the India Semiconductor Mission (ISM). These initiatives mark another milestone in the country’s ambition to become a global electronics manufacturing hub.

With these fresh approvals—by SiCSem, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc., and Advanced System in Package (ASIP) Technologies—the total number of sanctioned projects under ISM rises to 10, spanning six states and involving cumulative investments of around ₹1.60 lakh crore. The four newly cleared projects alone will involve an investment of approximately ₹4,600 crore, generating 2,034 high-skilled jobs and spurring thousands of indirect employment opportunities in allied sectors.

Driving Demand and Self-Reliance

India’s semiconductor demand is growing rapidly, driven by sectors such as telecom, automotive, data centres, consumer electronics, and industrial electronics. These newly approved facilities are expected to play a pivotal role in meeting domestic needs, reducing import dependence, and advancing the vision of Aatmanirbhar Bharat.

Project Details and Locations

1. SiCSem Private Limited – Odisha

In partnership with Clas-SiC Wafer Fab Ltd., UK, SiCSem will establish India’s first commercial Silicon Carbide (SiC)-based compound semiconductor fabrication facility in Info Valley, Bhubaneshwar.

• Capacity: 60,000 wafers annually, packaging of 96 million units.

• Applications: Defence (missiles, equipment), electric vehicles (EVs), railways, fast chargers, data centres, consumer appliances, solar inverters.

• Significance: The fab will address high-performance, high-efficiency semiconductor needs, critical for next-generation power electronics.

2. 3D Glass Solutions Inc. – Odisha

This facility will set up a vertically integrated advanced packaging and embedded glass substrate unit in Info Valley, Bhubaneshwar.

• Technologies: Glass interposers with passives, silicon bridges, 3D Heterogeneous Integration (3DHI) modules.

• Capacity: 69,600 glass panel substrates, 50 million assembled units, 13,200 3DHI modules annually.

• Applications: Defence, high-performance computing, AI, RF and automotive, photonics, and co-packaged optics.

• Significance: Brings the world’s most advanced semiconductor packaging technology to India, enabling higher performance and energy efficiency in chips.

3. Advanced System in Package (ASIP) Technologies – Andhra Pradesh

ASIP, in collaboration with APACT Co. Ltd., South Korea, will set up a semiconductor manufacturing unit in Andhra Pradesh.

• Capacity: 96 million units annually.

• Applications: Mobile phones, set-top boxes, automobile electronics, and a range of consumer electronics.

• Significance: Enhances India’s capabilities in system-in-package technology, crucial for compact and efficient electronics design.

4. Continental Device India Limited (CDIL) – Punjab

CDIL will expand its existing discrete semiconductor manufacturing facility at Mohali.

• Products: High-power discrete semiconductor devices—MOSFETs, IGBTs, Schottky bypass diodes, and transistors, in both silicon and silicon carbide.

• Capacity: 158.38 million units annually.

• Applications: Automotive electronics (including EVs and charging infrastructure), renewable energy, industrial power conversion, and telecom infrastructure.

Boosting India’s Semiconductor Ecosystem

These projects introduce India’s first commercial compound fab and the country’s first advanced glass-based substrate packaging facility, both critical for high-performance chip manufacturing. They will complement India’s growing chip design ecosystem, which is already supported by the government’s design infrastructure program benefiting 278 academic institutions and 72 start-ups.

The talent development initiative under ISM has already reached over 60,000 students, ensuring a skilled workforce for the expanding semiconductor sector.

Strategic Significance

By advancing domestic production capabilities across the semiconductor value chain—from fabrication to advanced packaging—these projects will help India reduce strategic vulnerabilities, strengthen national security in electronics, and capture a greater share of the global semiconductor market.

The combination of world-class infrastructure, technology partnerships, skilled talent, and government support positions India to become a semiconductor manufacturing powerhouse in the coming decade.