The Centre announced four new semiconductor manufacturing units, a major step forward for the India Semiconductor Mission and the country’s move to an ‘Atmanirbhar Bharat’—a self-reliant India. The Union Cabinet approved these projects in Odisha, Punjab, and Andhra Pradesh, with a combined investment of Rs 4,600 crore, in a bid to strengthen India’s position in the global electronics market, now marred with the US-China trade tensions.
For India—the world’s fourth largest economy, and the most populous nation—semiconductors are always in demand… they are in every electronic gadget we use, from mobile phones to laptops and TVs, to even cars.
Back in April 2025, THE WEEK covered India’s move to become an indigenous semiconductor powerhouse in our cover package. You can read it HERE.
Currently, India imports most of the crucial components for semiconductor-based electronics. Developing the country’s own manufacturing is vital for India’s economy and security. It reduces the country’s dependency on other nations, especially in a world where trade can be uncertain (thanks, mostly to Donald Trump).
Recently, global supply chains have been affected by trade tensions, such as the US tariffs on Indian goods, and China’s control over the trade of rare earth elements, which are used in making these chips. Building our own semiconductor plants is India’s answer to these challenges.
According to the Government’s recent statement, these four new projects will be set up by SiCSem and 3D Glass Solutions in Odisha, Continental Device India Private Limited (CDIL) in Punjab, and Advanced System in Package (ASIP) Technologies in Andhra Pradesh.
These facilities will not only make chips but also focus on advanced technologies. For instance, the unit in Odisha by SiCSem will be the country’s first commercial compound fabrication facility for a special type of Silicon Carbide chip, which is essential for electric vehicles (EVs), railways, and defence equipment.
The Odisha-based unit by 3D Glass Solutions “will bring world’s most advanced packaging technology to India. Advanced packaging brings the next generation of efficiency to the semiconductor industry. The facility will have a large variety of advanced technologies, including glass interposers with passives and silicon bridges, and 3D Heterogeneous Integration (3DHI) modules.”
The Government stated that these plants are expected to create over 2,000 direct skilled jobs and many more indirect jobs, giving a significant boost to the local economies in these states. This move is part of a larger plan, with a total of ten semiconductor projects now approved under the India Semiconductor Mission, bringing the total investment to around Rs 1.60 lakh crore.
“With the approval of these projects, the semiconductor ecosystem in the country would get a significant boost as these projects include the country’s first commercial compound fab as well as a highly advanced glass-based substrate semiconductor packaging unit. These would complement the growing world-class chip design capabilities coming up in the country, which are propelled by design infrastructure support provided by the Government to 278 academic institutions and 72 start-ups,” the Union Government statement read.