- The Union Cabinet approved four semiconductor projects under the India Semiconductor Mission totaling about ₹4,600 crore across Odisha (two), Punjab, and Andhra Pradesh.
- Key additions include India’s first commercial silicon carbide (SiC) fab by SiCSem and an advanced packaging/embedded glass substrate facility by 3D Glass Solutions, both in Bhubaneswar.
- CDIL will expand discrete power semiconductor production in Mohali, while ASIP Technologies will set up an assembly unit in Andhra Pradesh for consumer and automotive electronics.
- With these approvals, ISM-backed semiconductor projects rise to 10 across six states with roughly ₹1.6 lakh crore committed and about 2,034 direct skilled jobs from the new projects.
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The recent approvals mark a significant escalation in India’s strategy to develop its semiconductor manufacturing ecosystem. The projects approved on August 12, 2025 under the ISM bring in diverse capabilities—ranging from compound semiconductor fabrication to advanced packaging technologies and discrete power device production. The choice of states—Odisha (two projects), Punjab and Andhra Pradesh—helps deconcentrate industry from Gujarat and builds regional manufacturing strength.
Notably, SiCSem’s project in Odisha is India’s first commercial Silicon Carbide (SiC) fab, addressing strategic supply chain gaps in defence, EVs, and high-power electronics. Given SiC’s superior performance in high-temperature, high-voltage applications, this could allow India to reduce imports of critical power semiconductor components.
The 3D Glass Solutions plant introduces advanced packaging and embedded glass substrates, including 3D heterogeneous integration (3DHI), which are essential for high-performance computing (HPC), AI accelerators, photonics, and co-packaged optics. Such upstream capabilities are rare domestically, signaling a move up the value chain.
Meanwhile, the Punjab expansion (CDIL) and Andhra Pradesh ASIP unit focus on discrete devices and assembly operations—providing capacity for high-volume but lower-margin products. These complement the high-end fabrication and packaging in Odisha, helping ensure a full-stack ecosystem. However, success hinges on timely execution, upstream supply (wafers, glass substrates), skilled labour, and reliable policies.
Strategic implications are large: India moves toward self-reliance (“Atmanirbhar Bharat”) in semiconductor hardware, especially for critical sectors like EVs, renewables, defence, AI. But with Rs 76,000 crore ISM funding in play, these four are relatively modest in scale, especially since fabs require massive investment, supply chain integration, and lead time. Key open questions include: how quickly these plants will come online; how India will ensure upstream supply of raw materials (SiC wafers, glass substrates); and how policies will attract global partners beyond Intel and Lockheed Martin who are part of at least one project.
Supporting Notes
- Union Cabinet approved four semiconductor projects under ISM with investment totaling approximately ₹4,594–₹4,600 crore across three states: Odisha (two), Punjab (one), Andhra Pradesh (one).
- SiCSem Private Limited (UK partner Clas‐SiC Wafer Fab Ltd.) will build India’s first commercial SiC compound semiconductor fab in Bhubaneswar, Odisha, with capacity of 60,000 wafers and 96 million packaging units per annum; products aimed at defence, EVs, solar inverters, etc..
- 3D Glass Solutions Inc. (3DGS) will develop an advanced packaging and embedded glass substrate facility in Bhubaneswar; annual capacity ~69,600 glass panel substrates, 50 million assembled units, 13,200 3DHI modules; backed by Intel, Lockheed Martin.
- ASIP Technologies (in collaboration with South Korea’s APACT Co. Ltd.) will build a unit in Andhra Pradesh with annual capacity of 96 million units, catering to mobile phones, set-top boxes, automotive electronics, and other consumer/digital products.
- Continental Device India Ltd. (CDIL) will expand discrete power semiconductor manufacturing in Mohali, Punjab; capacity ~158.38 million units per year, producing MOSFETs, IGBTs, Schottky diodes, transistors in both silicon and SiC for EVs, renewable energy, power conversion, industrial uses, etc..
- These four new approvals bring total ISM-sanctioned semiconductor projects to 10 across six states with cumulative committed investment of ~₹1.6 lakh crore; direct skilled employment from the four new is ~2,034 people.