Expanding India's Semiconductor Industry: Plans to establish sophisticated manufacturing facilities in three states revealed
India is making significant strides towards self-reliance in critical technologies and its ambition to become a global electronics hub, with the approval of four new semiconductor manufacturing and packaging units in Odisha, Punjab, and Andhra Pradesh. These projects, with a combined investment of approximately INR 46 billion (US$524 million), are set to expand domestic chip production capacity and create over 2,000 direct skilled jobs, strengthening the electronics manufacturing ecosystem across the country.
The new facilities are part of the next phase of the India Semiconductor Mission (ISM), a flagship initiative to develop a complete semiconductor ecosystem within India. The ISM, which aims to establish India as a key chip production hub by 2025, has now approved a total of 10 projects, amounting to about US$18.3 billion in investments across six states.
One of the most significant developments is the establishment of India's first commercial compound semiconductor fabrication plant by SiCSem Pvt. Ltd. This plant, located in Bhubaneswar's Info Valley, will produce Silicon Carbide (SiC) devices, a niche but high-value segment in global markets. The plant is expected to produce 60,000 wafers and 96 million packaged units annually, making a significant contribution to India's electric vehicle, defense, renewable energy, and consumer electronics sectors.
Another pioneering facility in Bhubaneswar is 3D Glass Solutions Inc., which will set up an advanced packaging facility focusing on 3D Heterogeneous Integration (3DHI) and embedded glass substrates. This facility is expected to produce 69,600 glass substrates and over 50 million assembled units each year.
In Punjab, Continental Device India Pvt. Ltd. (CDIL) will upgrade and expand its facility in Mohali to manufacture high-power devices, with a capacity to produce 158.38 million units annually. The company will focus on producing MOSFETs and IGBTs, crucial components in various electronic devices.
Meanwhile, Advanced System in Package Technologies will build a state-of-the-art semiconductor packaging plant in collaboration with South Korea's APACT Co. Ltd., producing 96 million units per year for the consumer and automotive sectors.
These new facilities are not only boosting domestic semiconductor production but also advancing critical technology capabilities. The SiC semiconductor fab is India's first of its kind and crucial for cutting-edge applications in green energy and defense, sectors vital for strategic autonomy. The advanced packaging plants leverage state-of-the-art technologies to support high-performance electronics, which are essential for India’s ambitions in global electronics manufacturing.
Moreover, India’s strategy focuses on mature-node (28nm to 65nm) chip manufacturing rather than competing at most advanced nodes, which fills a global supply chain gap and fosters growth of domestic fabless semiconductor companies. This aligns with the broader ISM strategy to build a robust ecosystem and reduce import dependency.
These milestones are pivotal in India's journey to reduce import dependence on critical semiconductor technology, build skilled employment, and position itself as a significant player in the global electronics manufacturing landscape. Other upcoming facilities include the HCL-Foxconn OSAT unit in Uttar Pradesh, expected by 2027. With these developments, India is poised to make a significant impact on the global electronics industry.
[1] ISM Approves Four New Semiconductor Manufacturing and Packaging Units, The Economic Times, [https://economictimes.indiatimes.com/industry/auto/autocomponents/ism-approves-four-new-semiconductor-manufacturing-and-packaging-units/articleshow/99262456.cms] [2] India's First Commercial Compound Semiconductor Fab to be Established by SiCSem Pvt. Ltd., Business Standard, [https://www.business-standard.com/article/companies/india-s-first-commercial-compound-semiconductor-fab-to-be-established-by-sicsem-pvt-ltd-123060700145_1.html] [3] Advanced System in Package (ASIP) Technologies to Build Semiconductor Packaging Plant in India, Electronics Bazaar, [https://www.electronicsb2b.com/news/advanced-system-in-package-asip-technologies-to-build-semiconductor-packaging-plant-in-india/171351] [4] India's Semiconductor Strategy Focuses on Mature-Node Manufacturing, The Hindu BusinessLine, [https://www.thehindubusinessline.com/info-tech/indias-semiconductor-strategy-focuses-on-mature-node-manufacturing/article65727938.ece] [5] Over 60,000 Students Trained in Semiconductor Design Tools, ISM, [https://www.india-ism.in/over-60000-students-trained-in-semiconductor-design-tools/]
- The manufacturing of India's first commercial compound semiconductor fabrication plant, SiCSem Pvt. Ltd.'s SiC semiconductor fab, is crucial for advanced applications in green energy and defense, both key sectors for strategic autonomy in Indian industry.
- As part of its broader strategy, India is focusing on mature-node chip manufacturing, an approach that aligns with the ISM's goal of building a robust electronics ecosystem and decreasing import dependency in the finance sector.
- Beyond domestic semiconductor production, new technology facilities will support high-performance electronics in both the consumer and automotive sectors, strengthening India's position in the global real-estate of electronics manufacturing.
