INDIA’S SEMICONDUCTOR PUSH- NEW PROJECTS APPROVED UNDER ISM
- 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.
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