Cabinet approves semiconductor manufacturing projects in Odisha, Punjab, Andhra Pradesh

The Union Cabinet, on August 12, approved four new semiconductor manufacturing projects under the India Semiconductor Mission (ISM), bringing the total number of approved initiatives to ten across six states. These projects represent a significant boost to India’s semiconductor ecosystem, with a cumulative investment of approximately ₹1.60 lakh crore and the potential to create over 2,000 direct jobs.

The four new projects, with a total investment of ₹4,594 crore, will establish semiconductor units in Odisha, Punjab, and Andhra Pradesh, addressing the growing demand for chips in sectors such as telecom, automotive, data centers, and consumer electronics.

The newly approved projects include:

• SiCSem Private Limited: In a collaboration with Clas-SiC Wafer Fab Ltd. from the UK, SiCSem will establish India’s first commercial Silicon Carbide (SiC) compound semiconductor fabrication facility in Info Valley, Bhubaneswar, Odisha. The plant will produce devices for high-power applications in sectors like defense, electric vehicles (EVs), railways, and solar power inverters. It will have an annual capacity of 60,000 wafers and 96 million packaging units.
• 3D Glass Solutions Inc.: This US-based firm will also set up a unit in Info Valley, Bhubaneswar. Backed by investments from major US companies like Intel and Lockheed Martin, the facility will focus on advanced packaging and embedded glass substrates, serving applications in defense, AI, and high-performance computing.
• Continental Device India Private Limited (CDIL): The company will expand its existing facility in Mohali, Punjab, with an investment of ₹117 crore. The plant will manufacture high-power discrete semiconductor devices for use in automotive electronics, renewable energy systems, and communication infrastructure.
• Advanced System in Package (ASIP) Technologies: In partnership with a South Korean firm, ASIP will establish a new facility in Andhra Pradesh, with an investment of ₹468 crore. The plant will produce advanced chip packaging units for mobile phones, set-top boxes, and automotive applications.

These new approvals build on the momentum of the six projects already underway in Gujarat, Assam, and Uttar Pradesh, positioning India to become a key player in the global semiconductor supply chain.