India’s semiconductor ambitions gained momentum as the Union Cabinet approved four new semiconductor manufacturing projects on 12 August 2025. This brings the total number of approved projects under the India Semiconductor Mission to 10, spread across six states.
The four newly approved projects represent investments of approximately $524 million. Including previous commitments under the India Semiconductor Mission, total investments now reach about $18.2 billion.
Strategic Advantage
These projects address a critical gap in India’s electronics ecosystem. While the country excels in chip design talent, large-scale manufacturing has lagged behind regional leaders like Taiwan and South Korea, as reported in industry analyses.
Odisha emerges as a key manufacturing hub with two major facilities. Sic Sem Private Limited, partnering with UK-based Clas-Sic Wafer Fab Ltd, will establish India’s first commercial compound semiconductor fabrication facility. The plant will produce 60,000 wafers and package 96 million units annually.
Neigh boring this facility, 3D Glass Solutions Inc. will introduce advanced packaging technology using glass interposers and 3D heterogeneous integration. This represents cutting-edge packaging capabilities previously unavailable domestically.
Punjab will host Continental Device India Private Limited’s expansion at its Mohali facility. The company plans to produce high-power discrete semiconductors, including MOSFETs and IGBTs. Annual capacity will reach 158.38 million units.
Andhra Pradesh rounds out the new approvals with ASIP Technologies’ facility. In partnership with South Korea’s APACT Co. Ltd, this plant will handle 96 million units annually for mobile phones, automotive applications, and consumer electronics.
Market Impact in India
These developments come as global supply chains face mounting pressure. Geopolitical tensions and surging demand from the AI, automotive, and consumer electronics sectors have exposed vulnerabilities, according to Capacity Media reports.
Existing projects continue progressing alongside the new approvals. Micron Technology’s assembly and testing facility in Sanand, Gujarat, is scheduled for completion by December 2025. The $2.75 billion investment is expected to generate 5,000 direct and 15,000 indirect jobs.
Tata Electronics’ ₹27,000 crore (about $3.2 billion) semiconductor assembly and testing plant in Assam remains on track. The facility is expected to create 15,000 direct and 12,000 indirect jobs, totalling approximately 27,000 jobs, when operational.
Strategic partnerships enrich India’s semiconductor sector, with contributions from international companies such as Intel and Lockheed Martin in various capacities.
What Business Leaders Should Know
The cumulative impact extends beyond manufacturing capacity. These projects will create direct employment for over 2,000 skilled professionals, according to government statements. Indirect job creation across the electronics manufacturing ecosystem will multiply this impact.
India has extended design infrastructure support to 278 academic institutions and 72 startups, as reported by the Ministry of Electronics and Information Technology. In July 2025, officials approved 23 chip design projects focusing on surveillance systems, smart meters, and networking equipment.
Startup ecosystem benefits are already visible. Ten startups have secured venture capital funding, while six companies completed prototype tape-outs at international foundries. Seventeen institutions have fabricated 20 chip designs at the semiconductor laboratory in Mohali.
The scheme offers substantial financial incentives. Companies can receive reimbursement for up to 50% of their eligible expenses. Their eligible expenses. Their eligible expenses. Their costs. Coverage for design and prototyping, capped at $18 million. Performance-linked incentives provide 4-6 per cent of net sales for five years.
These initiatives position India as a competitive player in the global semiconductor value chain. The projects span fabrication, advanced packaging, and testing capabilities across multiple technology nodes.
Industry analysts believe 2025 will mark a defining moment for India’s semiconductor manufacturing capabilities. With state-level incentives and multinational collaboration, the foundation for sustained growth appears solid.
The timing aligns with India’s broader Atmanirbhar Bharat objectives. Reduced import dependency and increased domestic manufacturing capacity support strategic autonomy goals while creating economic opportunities.
