Progress in India Semiconductor Mission: 4 New Plants Approved in Odisha, Punjab, and Andhra Pradesh

On August 12, 2025, the Union Cabinet approved four new semiconductor manufacturing projects under the India Semiconductor Mission (ISM). These facilities will be set up in Odisha, Punjab, and Andhra Pradesh, marking a major step toward strengthening India’s semiconductor ecosystem. The newly approved plants are intended to bring advanced chip fabrication and packaging capabilities to different regions of the country. This geographic distribution of investments highlights the government’s focus on balanced regional growth, while also advancing India’s vision of creating a resilient semiconductor supply chain.

The four projects, proposed by SiCSem, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc., and Advanced System in Package (ASIP) Technologies, together involve an investment of around ₹4,600 crore. They are projected to create jobs for 2,034 skilled professionals, while boosting the broader electronics manufacturing ecosystem and generating numerous indirect job1 opportunities.

Industry Focus of the Approved Proposals

The newly sanctioned semiconductor projects are designed to strengthen India’s expertise in chip fabrication, advanced packaging, and discrete device production, addressing key gaps in the nation’s electronics ecosystem. In line with the India Semiconductor Mission, these initiatives aim to reduce import reliance, build supply chain resilience, and encourage technology transfer through international collaborations. Alongside advancing priority industries such as automotive, renewable energy, defence, and consumer electronics, the projects are expected to generate high-value jobs, support ancillary sectors, and contribute to India’s economic growth by positioning the country as a competitive force in the global semiconductor industry.

Odisha:

In Bhubaneswar, SiCSem Private Limited, in partnership with UK-based Clas-SiC Wafer Fab Ltd., will establish India’s first commercial Silicon Carbide (SiC) compound semiconductor fabrication plant with a capacity of 60,000 wafers and 96 million packaged units per year. The facility will serve advanced applications in automotive, renewable energy, and industrial electronics. Additionally, 3D Glass Solutions Inc. will set up a state-of-the-art packaging and embedded glass substrate facility in Info Valley, deploying technologies like glass interposers, silicon bridges, and 3D Heterogeneous Integration (3DHI) modules. With annual capacity of nearly 70,000 glass panel substrates, 50 million assembled units, and 13,000 3DHI modules, this unit will support sectors such as defence, AI, high-performance computing, RF, photonics, and automotive electronics.

Andhra Pradesh:

Advanced System in Package (ASIP) Technologies, in collaboration with South Korea’s APACT Co. Ltd., will set up a semiconductor facility with an annual output of 96 million units. Its products will target fast-growing markets like mobile devices, set-top boxes, automotive electronics, and consumer electronics.

Punjab:

In Mohali, Continental Device India Private Limited (CDIL) will scale up its discrete semiconductor facility to produce high-power components such as MOSFETs, IGBTs, Schottky diodes, and transistors in both silicon and silicon carbide. With a capacity for 158 million units annually, the facility will directly serve EVs, charging infrastructure, renewable energy, power conversion, industrial electronics, and communications.

Together, these projects mark a major boost to India’s semiconductor landscape, featuring the country’s first compound semiconductor fabrication plant and an advanced glass-based packaging unit. They complement India’s fast-growing, government-backed chip design ecosystem, ensuring stronger integration into global supply chains.

Foundation of India’s Semiconductor Growth: Past Project Approvals

With these recent approvals, the overall number of sanctioned initiatives under the India Chipmaking Mission has increased to 10, attracting cumulative investments of around INR 1.60 lakh crore across various regions of the nation. This milestone highlights India’s accelerating journey toward building a robust semiconductor ecosystem, bolstering its position in international value chains while advancing innovation, employment, and economic growth within.

Government Initiatives to Boost Semiconductor Design and Skilled Workforce

India has offered significant design resources and support to numerous academic institutions alongside 72 start-ups, encouraging innovation and developing the next wave of semiconductor professionals. In July this year, the Electronics and Information Technology (MeitY) approved multiple chip design initiatives from startups, small firms, and educational institutions, targeting uses such as security systems, smart devices, networking equipment, plus microprocessor IP solutions.

Progress under this initiative has already been notable: several startups have obtained venture capital, while companies have finalised prototype tape-outs through international foundries, and institutions have built 20 chip models at the Semiconductor Laboratory in Mohali, Punjab. Supported by a budgeted outlay of INR 8.03 billion, this scheme provides nearly 50 percent expense coverage for designing and prototyping (limited at INR 150 million) and performance-based incentives of roughly 4-6 percent on net sales over five years (restricted at INR 300 million). Altogether, these measures are laying a solid foundation for skilled workforce development plus a self-reliant design ecosystem, vital towards sustaining India’s future semiconductor ambitions.

Conclusion

In summary, the India Semiconductor Mission (ISM) has quickly emerged as a key pillar of the country’s technology agenda, with 10 sanctioned projects drawing investments of over INR 1.60 trillion and covering vital domains such as fabrication, packaging, and discrete device production. Alongside these industrial achievements, government-supported programs in chip design, prototyping, and talent development are building a strong innovation pipeline across academia and startups. Collectively, these initiatives are not only reducing import dependence and reinforcing supply chain resilience but also positioning India as a rising hub in the global semiconductor ecosystem, driving long-term economic growth, technological independence, and the creation of high-skilled employment opportunities.

Looking forward, India’s semiconductor journey is set to gather more momentum with deeper international partnerships, the expansion of advanced technology clusters, and continued investment in workforce training. As global demand for chips rises across industries such as AI, electric mobility, and renewable energy, India’s growing ecosystem will be well-positioned to address both domestic and international needs. By aligning industrial capabilities with innovation and skill development, the ISM is poised to play a defining role in making India a competitive and sustainable global force in next-generation semiconductor technologies.