The Union Cabinet has recently given the green light to four new semiconductor manufacturing projects across three key states: Odisha, Punjab, and Andhra Pradesh. This significant approval, announced on August 12, 2025, comes with a combined investment of Rs 4,594 crore, marking a major milestone in India’s ongoing push to become a global powerhouse in semiconductor production under the India Semiconductor Mission (ISM).

These four projects will add substantial strength to India’s chip manufacturing capabilities, raising the total number of sanctioned semiconductor projects in the country to ten, with an overall committed investment nearing Rs 1.6 lakh crore across six states. The new plants are not only expected to create over 2,000 skilled jobs but also numerous indirect employment opportunities throughout the electronics manufacturing ecosystem.

Breaking down the new developments, Odisha will host two cutting-edge units. The first is a silicon carbide (SiC) semiconductor plant established by SiCSem Pvt. Ltd. Situated in Bhubaneswar’s Info Valley, this facility represents India’s first commercial compound semiconductor fab. Silicon carbide is a robust material capable of withstanding high temperatures and is vital for numerous strategic applications including missiles, satellites, telecom towers, rockets, and railway engines. The SiCSem plant is designed to produce 60,000 wafers annually, translating to about 96 million chips yearly.

Alongside it, Odisha will also see the launch of a 3D glass semiconductor packaging unit by Heterogeneous Integration Packaging Solutions Pvt. Ltd. This project, backed by international tech giants such as Intel and Lockheed Martin, will bring world-class advanced packaging technology to India. Its production capacity will include 70,000 glass substrates, 50 million assembled units, and 13,200 advanced modules annually. This facility aims to serve a broad spectrum of high-tech sectors including artificial intelligence, automotive electronics, photonics, and communication systems. In Andhra Pradesh, Advanced System in Package (ASIP) Technologies, in partnership with South Korea’s APACT Co. Ltd., will set up a chip packaging plant with an annual capacity to produce 96 million units. These chips will be key components for automotive electronics, consumer devices, and set-top boxes.

Punjab will see the expansion of the Continental Device India Limited (CDIL) semiconductor manufacturing facility in Mohali. This brownfield project will focus on producing high-powered discrete semiconductor devices such as MOSFETs, IGBTs, Schottky bypass diodes, and transistors using both silicon and silicon carbide materials. The new facility will have an annual production capacity of approximately 158 million units, supplying components essential for electric vehicles, renewable energy systems, industrial power conversions, and communication infrastructure.

This cluster of approvals exemplifies India's strategic initiative to reduce import dependency on semiconductors, bolster domestic electronics manufacturing, and elevate the country’s role in the global semiconductor supply chain. By fostering innovation in compound semiconductors and advanced packaging, India is aligning itself with emerging technologies critical for defense, automotive, telecommunications, and artificial intelligence sectors.

Additionally, these developments will enhance India's capabilities in providing the next generation of automotive-grade and high-performance chips needed for evolving markets like electric vehicles, smart infrastructure, and AI-enabled systems. This comes at a time when the global semiconductor market is expanding rapidly, and India aims to capture a substantial share through favorable policies, investments, and international partnerships.

The government’s continued focus on skill development and infrastructure support fosters a comprehensive ecosystem that not only manufactures but also designs and innovates semiconductor technologies. With project operations expected to be functional within two to three years, India’s semiconductor industry is on a clear trajectory towards technological self-reliance and global relevance.

In summary, the approval of these four semiconductor plants is a clear signal of India's commitment to becoming a major player in this foundational industry. The projects in Odisha, Punjab, and Andhra Pradesh represent a blend of cutting-edge technology, strategic defense applications, and high-volume production capacity that will drive the nation’s electronics manufacturing surge well into the future. This collective effort will make India a pivotal node in the worldwide semiconductor value chain, opening vast avenues for economic growth, innovation, and employment.