India Clears Rs. 4,594 Cr Semiconductor Projects in 3 States

On August 12, the Indian government approved four new semiconductor projects worth Rs. 4,594 crore (US$524.2 million) across Odisha, Andhra Pradesh, and Punjab.

Backed by SiCSem, Heterogeneous Integrated Packaging Solutions, Continental Device India, and Advanced System in Package Technologies, the move raises the country’s total sanctioned chip manufacturing facilities to 10. SiCSem, in partnership with Scotland’s Clas-SiC Wafer Fab, will set up a silicon carbide manufacturing facility in Bhubaneswar. HIPSPL, a subsidiary of US-based 3D Glass Solutions, will also establish an advanced packaging plant in Bhubaneswar. CDIL will expand its existing Mohali facility in Punjab, while ASIP Technologies will build a new unit in Andhra Pradesh.

Key Highlights

• Government approves Rs. 4,594 crore chip manufacturing projects across three states
• Partnerships with global firms to set up silicon carbide and advanced packaging plants
• 2,000 skilled jobs to be created for sectors like defense, EVs, and electronics

The India Semiconductor Mission’s Rs. 76,000 crore corpus supports this ambitious timeline, with the government targeting domestic production to serve both local demand and export opportunities in a market experiencing consistent year-on-year growth for eleven consecutive months.

This specialization strategy makes economic sense given the technical barriers and capital requirements. Rather than entering the highly competitive and capital-intensive traditional silicon wafer market dominated by established players, India is targeting niche segments where technical expertise and specialized manufacturing can command premium pricing and face less direct competition from existing global capacity.

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The projects are expected to create around 2,000 skilled jobs and strengthen domestic supply chains for sectors including defense, electric vehicles, consumer electronics, and power infrastructure.