• On August 12, 2025, the Government of India approved four new semiconductor manufacturing projects under the India Semiconductor Mission (ISM).
  • These projects will be located in the states of Odisha, Punjab, and Andhra Pradesh, with a total investment of ₹4,600 crore.
  • The projects are expected to:
    • Generate employment for 2,034 skilled professionals.
    • Contribute to India’s first commercial chip production, possibly within 2025.

INDIA’S SEMICONDUCTOR MISSION

  • Launched: 2021
  • Objective: To establish a robust semiconductor ecosystem in India.
  • Incentive Outlay: ₹75,000 crore
  • Focus Areas:
    • Wafer fabrication (fabs)
    • Assembly, Testing, Marking & Packaging (ATMP/OSAT)
    • Compound semiconductors
    • Display manufacturing
With the new approvals, 10 projects have now been sanctioned under ISM across 6 Indian states, involving total investments of ~₹1.60 lakh crore.

NEW PROJECTS APPROVED

Company Location Key Highlights
SiCSem Pvt. Ltd. Info Valley, Bhubaneswar, Odisha India's first commercial compound semiconductor fab focused on Silicon Carbide (SiC) devices. Annual capacity: 60,000 wafers + 96 million units packaging. In collaboration with Clas-SiC Wafer Fab Ltd. (UK)
3D Glass Solutions Inc. (3DGS) Info Valley, Bhubaneswar, Odisha US-based firm setting up embedded glass substrate & advanced packaging unit
CDIL (Continental Device India Pvt. Ltd.) Mohali, Punjab Brownfield expansion of existing fab to manufacture high-power discrete devices (MOSFETs, IGBTs, Schottky diodes, etc.) using Silicon & SiC. Capacity: 158.38 million units annually
ASIP Technologies Andhra Pradesh In partnership with APACT Co. Ltd. (South Korea). Products to serve mobiles, set-top boxes, automobiles, etc. Annual capacity: 96 million units

SIGNIFICANCE OF THESE PROJECTS

1. Strengthening Domestic Chip Manufacturing
  • India has no commercial chip fabrication units
  • This marks a breakthrough in indigenous manufacturing of both wafers and packaged chips.
2. Technological Advancements
  • Focus on compound semiconductors (SiC), which are critical for:
    • Electric vehicles
    • 5G telecom equipment
    • High-performance computing
    • Defense & aerospace
3. Foreign Collaboration
  • Collaborations with companies from UK, US, and South Korea bring in:
    • Technology transfer
    • Global best practices
    • Faster operationalisation

KEY APPROVED PROJECTS SO FAR

Project Location Details
Tata-PSMC Fabrication Unit Dholera, Gujarat JV with Taiwan’s PSMC, producing 50,000 wafers/month for automotive & AI by 2026 ₹91,526 crore
Micron ATMP Facility Sanand, Gujarat DRAM & NAND packaging, operational by late 2025 ₹22,900 crore
Tata TSAT OSAT Unit Jagiroad, Assam To produce 48 million chips/day
Kaynes Technology OSAT Sanand, Gujarat Production of 6 million chips/day for industrial & telecom use
HCL-Foxconn JV Uttar Pradesh To produce 36 million display driver chips/month by 2027

WHY THIS MATTERS?

  • Reducing Import Dependency
    • India imports over 90% of its semiconductor needs.
    • Semiconductor imports are strategic and expensive, especially post-COVID and amid global chip shortages.
  • National Security & Strategic Autonomy
    • Semiconductors power everything from missiles to mobiles.
    • Indigenous capacity is critical for cybersecurity, defense, and sovereign control over supply chains.
  • Boosting Electronics & EV Sector
    • India aims to become a global electronics manufacturing hub.
    • EVs, IoT, AI, 5G, and defense equipment all rely on advanced semiconductor devices.
  • Job Creation & Skill Development
    • The approved projects will generate thousands of high-skill jobs, boosting R&D, manufacturing, and design capabilities.
CONCLUSION India’s semiconductor mission is entering a critical phase with real production units being set up. The latest approvals signal strong policy intent, international collaboration, and technological upgrading. If timelines hold, India could soon join the elite club of nations with domestic chip fabrication, a milestone with profound implications for economic growth, strategic autonomy, and global competitiveness.