Union Cabinet Approves ₹4,600 Crore Semiconductor Manufacturing Projects


India’s cabinet greenlights projects in Odisha, Punjab, and Andhra Pradesh, enhancing chip production under the India Semiconductor Mission.

Overview:

The Union Cabinet, led by Prime Minister Narendra Modi, has sanctioned ₹4,600 crore for four new semiconductor manufacturing ventures in Odisha, Punjab, and Andhra Pradesh. These projects, part of the India Semiconductor Mission, aim to bolster chip production in the country. With this approval, the total number of sanctioned semiconductor projects has reached 10 across six states.

India’s Expanding Semiconductor Ecosystem

  • Total Projects Approved: 10 (including previous six projects)
  • Total Investment: ~₹1.60 lakh crore
  • Direct Jobs Created: Over 2,000 skilled positions
  • Indirect Jobs: Several thousand more in supporting industries
  • Target Sectors: Telecom, automotive, data centres, consumer electronics, industrial automation, renewable energy, and defense

The Four New Semiconductor Projects

1. SiCSem Private Limited – Odisha

  • Partnership: Clas-SiC Wafer Fab Ltd., UK
  • Location: Info Valley, Bhubaneswar, Odisha
  • Significance: First commercial Silicon Carbide (SiC) compound semiconductor fab in India
  • Capacity: 60,000 wafers/year & 96 million packaging units/year
  • Applications: Defence, electric vehicles, railways, data centres, solar inverters, consumer electronics

2. 3D Glass Solutions Inc. – Odisha

  • Technology: Vertically integrated advanced packaging & embedded glass substrate manufacturing
  • Capacity: 69,600 glass panel substrates/year & 50 million assembled units/year
  • Applications: High-performance computing, AI, automotive, photonics, defense

3. ASIP Technologies – Andhra Pradesh

  • Partnership: APACT Co. Ltd., South Korea
  • Capacity: 96 million units/year
  • Products: Semiconductor components for mobile phones, set-top boxes, automotive electronics, consumer devices

4. Continental Device India Pvt. Ltd. (CDIL) – Punjab

  • Location: Mohali (brownfield expansion)
  • Products: High-power devices — MOSFETs, IGBTs, Schottky diodes, transistors (Silicon & SiC)
  • Capacity: 158 million units/year
  • Applications: EVs, renewable energy, power conversion, communication systems

Strategic Importance of the Projects

  • First SiC Compound Fab in India: Strengthens domestic supply chain for high-performance electronics
  • Balanced Regional Development: Spread across east (Odisha), north (Punjab), and south (Andhra Pradesh)
  • Import Reduction: Reduces reliance on foreign semiconductor imports
  • Global Competitiveness: Positions India as a potential chip manufacturing hub in Asia

Supporting Ecosystem and Talent Development

  • 278 academic institutions supported for R&D and design initiatives
  • 72 chip design startups receiving incentives
  • 60,000+ students trained for semiconductor industry needs

Key Takeaways for Competitive Exams

  • India approves ₹4,600 crore for semiconductor projects in Odisha, Punjab, and Andhra Pradesh
  • Projects under the India Semiconductor Mission aim to boost chip production in the country
  • Strategic projects to enhance domestic supply chain and reduce reliance on foreign imports
  • Diverse applications in sectors like telecom, automotive, data centres, and defense
  • Fostering a strong semiconductor design ecosystem through academic support and startup incentives


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