Four semiconductor manufacturing facilities based in Odisha, Punjab, and AP have received clearance, with an investment of approximately Rs 4600 crores.
The Union Cabinet has approved four new semiconductor manufacturing projects, as part of the India Semiconductor Mission (ISM), with a combined investment of approximately Rs 4,594-4,600 crore. These projects are set to generate around 2,034 skilled jobs and boost India's semiconductor industry.
The Newly Approved Semiconductor Units
The new projects span across three states: Odisha, Punjab, and Andhra Pradesh.
- SiCSem Private Limited, based in Bhubaneswar, Odisha, will establish India’s first commercial compound semiconductor fab. The unit will have a capacity to produce 60,000 wafers per year and 96 million units of packaging. It will primarily focus on producing semiconductors for electric vehicles (EV), defense, missiles, and solar inverters.
- 3D Glass Solutions Inc. (3DGS), also in Bhubaneswar, Odisha, will set up a high-tech packaging unit for semiconductors. This unit will augment India's semiconductor packaging ecosystem.
- Continental Device India Pvt Ltd (CDIL) in Mohali, Punjab, will expand its existing semiconductor manufacturing operations, increasing its capacity in the state.
- Advanced System In Package (ASIP) Technologies in Andhra Pradesh will contribute to advanced packaging and system integration in the region.
The India Semiconductor Mission
The 10 approved projects under the ISM are distributed across six states, including Odisha, Punjab, and Andhra Pradesh. The ISM aims to boost India's semiconductor ecosystem, covering various chip manufacturing needs, including silicon carbide wafers, compound semiconductors, and packaging.
India expects its first domestically made semiconductor chip to be rolled out by 2025. The overall semiconductor ecosystem under ISM also seeks to boost chip design capabilities with support extended to over 278 academic institutions and 72 startups nationwide.
The Tato-II Hydroelectric Project
In addition to the semiconductor projects, the government has approved an investment of Rs 8,146.21 crore for the construction of a 700 MW Tato-II hydroelectric project in Shi Yomi District of Arunachal Pradesh. The estimated completion period for the project is 72 months. The power generated from the project will help improve the electricity supply position in Arunachal Pradesh and balance the national Grid.
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[3] New Semiconductor Units Approved Under India Semiconductor Mission. (2025, August). Retrieved from www.pib.gov.in
[4] ISM Approves Four New Semiconductor Projects in India. (2025, August). Retrieved from www.business-standard.com
[5] India's Semiconductor Dream: A Journey Towards Self-Reliance. (2025, August). Retrieved from www.livemint.com
Technology plays a significant role in the newly approved semiconductor units, with SiCSem Private Limited set to produce semiconductors for electric vehicles, defense, missiles, and solar inverters. Additionally, Advanced System In Package Technologies will contribute to advanced packaging and system integration. These projects are part of the India Semiconductor Mission (ISM), a government initiative aiming to boost India's semiconductor ecosystem and foster chip design capabilities, with the goal of producing the country's first domestically made semiconductor chip by 2025.
