Newsletter
Chips might be smaller than your fingernail, but they decide the fate of billion-dollar industries. And India just decided it’s time to make a lot more of them within its borders.
On Tuesday, the Union Cabinet cleared four semiconductor manufacturing projects worth ₹4,594 crore under the India Semiconductor Mission (ISM). The aim is simple: reduce dependence on imports, plug into the global chip supply chain, and make sure India is not left scrambling the next time there’s a global shortage.
Two of these projects will be in Odisha, one in Punjab, and one in Andhra Pradesh. In Bhubaneswar’s Info Valley, SiCSem Pvt Ltd, in partnership with UK-based Clas-SiC Wafer Fab, will set up India’s first commercial compound semiconductor fabrication unit. It will produce 60,000 wafers and package 96 million units annually for use in EVs, railways, fast chargers, data centres, solar inverters, consumer appliances, and missile systems.
Right next door, US-based 3D Glass Solutions will bring advanced packaging and embedded glass substrate technology to India for the first time. This facility will make 69,600 glass panel substrates, 50 million assembled units, and 13,200 modules each year, supporting high-performance computing, AI, defence electronics, RF, and photonics applications. Advanced packaging is what allows chips to be faster, more efficient, and ready for next-gen tech.
In Andhra Pradesh, Advanced System in Package (ASIP) Technologies is teaming up with South Korea’s APACT Co. Ltd. to build a unit that can produce 96 million semiconductor units annually for mobile devices, set-top boxes, automotive electronics, and other applications.
Meanwhile, in Mohali, Continental Device India Ltd. (CDIL) will expand its discrete semiconductor manufacturing capacity to 158 million high-power devices a year.
These include MOSFETs and IGBTs, which are special types of switches that control how electricity flows in circuits, Schottky diodes that allow current to pass in one direction with minimal energy loss, and transistors made from both silicon and the more heat-resistant silicon carbide. Together, these components are essential for running electric vehicles, renewable energy systems, industrial automation equipment and communication networks efficiently.
With these additions, the ISM portfolio now stands at 10 projects across six states, with total investments touching ₹1.6 lakh crore. And the ecosystem is growing beyond just factories. There are now 72 startups working on semiconductor design, 278 academic institutions involved in research and training, and over 60,000 students building chip-related skills.
The growth story isn’t starting from zero. In the last 11 years, India’s electronics manufacturing sector has grown six times to ₹12 lakh crore. Electronics exports have jumped eightfold to ₹3.3 lakh crore, and mobile production has surged 28 times to ₹5.5 lakh crore. The logic is clear; as chips become essential for everything from defence to consumer electronics, having local manufacturing is no longer optional.
These new projects won’t change the game overnight, but they are a crucial step in the long play. If all goes to plan, this could be the start of India’s shift from being a major chip importer to becoming a serious global supplier.
FAQs
What is the India Semiconductor Mission (ISM)?
The India Semiconductor Mission (ISM) is a government initiative aimed at building a complete semiconductor ecosystem in India, including manufacturing, packaging, and design, to reduce dependence on imports and strengthen the country’s position in the global chip supply chain.
How many projects are currently approved under the India Semiconductor Mission?
As of August 2025, there are 10 approved projects under the India Semiconductor Mission across six states, with total investments of around ₹1.6 lakh crore.
Which states will get the new semiconductor projects announced in August 2025?
The four newly approved semiconductor projects will be located in Odisha, Punjab, and Andhra Pradesh. Two will be in Odisha, one in Punjab, and one in Andhra Pradesh.
What is the total investment in the new semiconductor projects approved in August 2025?
The four newly approved projects under ISM have a combined investment of ₹4,594 crore.
Which company will set up India’s first commercial compound semiconductor fab?
SiCSem Pvt Ltd, in partnership with UK-based Clas-SiC Wafer Fab, will set up India’s first commercial compound semiconductor fabrication facility in Info Valley, Bhubaneswar, Odisha.
What technology will 3D Glass Solutions bring to India?
3D Glass Solutions will introduce advanced packaging and embedded glass substrate technology to India, enabling faster and more efficient chips for applications in AI, defence electronics, high-performance computing, RF, and photonics.
What products will ASIP Technologies manufacture in Andhra Pradesh?
ASIP Technologies, in partnership with South Korea’s APACT Co. Ltd., will manufacture semiconductor units for mobile devices, set-top boxes, automotive electronics, and other applications, with an annual capacity of 96 million units.
What is the focus of Continental Device India Ltd.’s expansion in Mohali?
Continental Device India Ltd. will expand its discrete semiconductor manufacturing in Mohali to produce 158 million high-power devices annually, including MOSFETs, IGBTs, Schottky diodes, and transistors in silicon and silicon carbide.
Which other major companies are part of the ISM portfolio?
Major companies in the ISM portfolio include Tata Electronics, Micron Technology, Kaynes Technology, HCL-Foxconn, CG Power, Renesas, and Stars Microelectronics, alongside the newly approved SiCSem, 3D Glass Solutions, ASIP Technologies, and CDIL.
Why is India investing heavily in semiconductor manufacturing?
India is investing heavily in semiconductor manufacturing to secure supply chains, reduce import dependency, support its growing electronics and technology sectors, and position itself as a competitive global supplier of chips.
