Centre Approves Four New Semiconductor Units Worth ₹4,600 Crore
The Union Cabinet has approved the establishment of four new semiconductor manufacturing units in Odisha, Punjab, and Andhra Pradesh, with a total investment of ₹4,594 crore. The move is part of the India Semiconductor Mission to bolster the country's electronics manufacturing ecosystem. The projects include a silicon carbide plant in Bhubaneswar, a 3D glass unit in Odisha, a chip packaging plant in Andhra Pradesh, and a facility in Punjab, significantly boosting India's capacity in this strategic sector.
Unpacked:
Major companies include SiCSem Private Limited (with UK’s Clas-SiC Wafer Fab Ltd.), Continental Device India Pvt. Ltd., 3D Glass Solutions Inc., and ASIP Technologies (with South Korea’s APACT Co. Ltd.). Notably, Intel and Lockheed Martin are also supporting one of the projects, indicating significant international collaboration.
These units are expected to strengthen India’s self-sufficiency in chip manufacturing, support advanced applications in sectors like telecom, automotive, and consumer electronics, and position India as a global player in the semiconductor value chain. They also mark the country’s first commercial compound semiconductor and advanced packaging facilities.
The ₹4,594 crore investment is part of a much larger initiative, as India has approved 10 semiconductor projects with a cumulative commitment of about ₹1.60 trillion (US$18.23 billion) since launching the India Semiconductor Mission in 2021, showing a major scale-up in government and private sector support.
India may encounter challenges such as acquiring advanced manufacturing technology, developing skilled talent, securing supply chains, and competing with established global players like Taiwan and South Korea. Ensuring timely project completion and effective integration into global value chains will be crucial.