Cabinet Approves Semiconductor Manufacturing Units in Odisha, Punjab, and Andhra Pradesh with an Outlay of Rs 4,600 Crore

New Delhi: The Union Cabinet, led by Prime Minister Shri Narendra Modi, has approved four new semiconductor manufacturing projects under the India Semiconductor Mission (ISM) with a total investment of around Rs 4,600 crore. These projects are proposed by SiCSem, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc., and Advanced System in Package (ASIP) Technologies. They will be set up in Odisha, Punjab, and Andhra Pradesh. Together, these projects are expected to create jobs for 2,034 skilled professionals and generate many indirect jobs by strengthening the electronic manufacturing industry.

With these new approvals, the total number of sanctioned projects under ISM has reached 10, with total investments of about Rs 1.60 lakh crore spread across six states. Six projects are already in different stages of execution. The rising demand for semiconductors in telecom, automotive, data centers, consumer electronics, and industrial electronics is driving this growth. This expansion will play a key role in helping India become more self-sufficient under the Atmanirbhar Bharat vision.

Two of the newly approved projects will be established in Info Valley, Bhubaneshwar, Odisha. SiCSem Private Limited, in partnership with Clas-SiC Wafer Fab Ltd., UK, will set up the country’s first commercial compound semiconductor fabrication facility. This unit will produce Silicon Carbide devices with an annual capacity of 60,000 wafers and a packaging capacity of 96 million units. These devices will be used in missiles, defense equipment, electric vehicles, railways, fast chargers, data center racks, consumer appliances, and solar power inverters. 3D Glass Solutions Inc. will create a vertically integrated advanced packaging and embedded glass substrate unit, bringing innovative packaging technology to India. This facility will produce glass interposers with passives, silicon bridges, and 3D Heterogeneous Integration modules, with an annual capacity of about 69,600 glass panel substrates, 50 million assembled units, and 13,200 3DHI modules. It will serve sectors such as defense, high-performance computing, artificial intelligence, RF and automotive, photonics, and co-packaged optics.

In Andhra Pradesh, Advanced System in Package Technologies will set up a semiconductor manufacturing unit in collaboration with APACT Co. Ltd., South Korea. This unit will have an annual capacity of 96 million units for mobile phones, set-top boxes, automotive applications, and other electronic products. In Punjab, Continental Device India Private Limited will expand its discrete semiconductor manufacturing facility in Mohali to produce high-power devices such as MOSFETs, IGBTs, Schottky Bypass Diodes, and transistors using both Silicon and Silicon Carbide. This unit will have an annual capacity of 158.38 million units for automotive electronics, including electric vehicles, renewable energy systems, power conversion, industrial applications, and communication infrastructure.

These projects will greatly enhance India’s semiconductor ecosystem by introducing the country’s first commercial compound semiconductor fabrication unit and a highly advanced glass-based substrate packaging facility. They will also complement the growing chip design capabilities in the country, supported by the government’s design infrastructure assistance to 278 academic institutions and 72 startups. More than 60,000 students have already benefited from the talent development program, creating a strong base for the skilled workforce needed in this vital sector.