Quick Take
- India Cabinet approved 4 semiconductor plants worth $524M: bringing total mission investments to ₹1.5T ($18.2B)
- Odisha gets India’s first commercial compound semiconductor fab: producing 60,000 wafers annually
- Projects create 2,000+ direct jobs: across Punjab, Odisha, and Andhra Pradesh states
- New facilities complement existing Micron Gujarat plant: completing December 2025
India’s push into semiconductor manufacturing hit a major milestone when the Union Cabinet signed off on four new manufacturing projects worth $524 million on August 12, 2025. The Ministry of Electronics and Information Technology says these approvals bring total investments under the India Semiconductor Mission to ₹1.5 trillion ($18.2 billion) across 10 projects spanning six states.
Manufacturing Push Addresses Critical Supply Chain Vulnerabilities
The strategic expansion tackles head-on India’s electronics ecosystem gap where chip design talent thrives but large-scale manufacturing has fallen behind regional powerhouses Taiwan and South Korea. Global supply chains are under mounting pressure from geopolitical tensions and surging demand from AI, automotive, and consumer electronics sectors, creating critical vulnerabilities.
These developments position India as a serious competitor in the global semiconductor value chain, covering fabrication, advanced packaging, and testing capabilities across multiple technology nodes.
Odisha Emerges as Advanced Manufacturing Hub
Odisha landed two major facilities that establish the state as a compound semiconductor center. Sic Sem Private Limited, working with UK-based Clas-Sic Wafer Fab Ltd, will build India’s first commercial compound semiconductor fabrication facility producing 60,000 wafers and packaging 96 million units annually.
Next door to this facility, 3D Glass Solutions Inc. will bring in advanced packaging technology using glass interposers and 3D heterogeneous integration—cutting-edge capabilities that weren’t available domestically before.
Punjab and Andhra Pradesh Expand Production Capacity
Punjab will be home to Continental Device India Private Limited’s expansion at its Mohali facility, producing high-power discrete semiconductors including MOSFETs and IGBTs with annual capacity reaching 158.38 million units.
Andhra Pradesh completes the new approvals with ASIP Technologies’ facility. Working with South Korea’s APACT Co. Ltd, this plant will handle 96 million units annually for mobile phones, automotive applications, and consumer electronics.
Existing Projects Drive Near-Term Economic Impact
Existing projects keep moving forward alongside new approvals. Micron Technology’s assembly and testing facility in Sanand, Gujarat, is on track to finish by December 2025. The $2.75 billion investment should generate 5,000 direct and 15,000 indirect jobs.
Tata Electronics’ ₹27,000 crore ($3.2 billion) semiconductor assembly and testing plant in Assam stays on schedule, creating 15,000 direct and 12,000 indirect jobs—totaling approximately 27,000 jobs when operational.
Ecosystem Development Creates Multiplier Effects
The combined impact goes beyond manufacturing capacity through direct employment for over 2,000 skilled professionals. Indirect job creation across the electronics manufacturing ecosystem will multiply this impact significantly.
| State | Company | Investment | Annual Capacity | Technology Focus |
|---|---|---|---|---|
| Odisha | Sic Sem Private Limited | Part of $524M | 60,000 wafers | Compound semiconductors |
| Odisha | 3D Glass Solutions | Part of $524M | Advanced packaging | Glass interposers |
| Punjab | Continental Device India | Part of $524M | 158.38M units | Power semiconductors |
| Andhra Pradesh | ASIP Technologies | Part of $524M | 96M units | Mobile/automotive |
India has extended design infrastructure support to 278 academic institutions and 72 startups. In July 2025, officials approved 23 chip design projects focusing on surveillance systems, smart meters, and networking equipment.
Financial Incentives Support Rapid Industry Growth
The scheme offers substantial financial incentives with companies getting reimbursement for up to 50% of eligible expenses. Coverage for design and prototyping reaches $18 million, while performance-linked incentives provide 4-6% of net sales for five years.
Startup ecosystem benefits show immediate results: ten startups secured venture capital funding, six companies completed prototype tape-outs at international foundries, and seventeen institutions fabricated 20 chip designs at the semiconductor laboratory in Mohali.
Strategic Implications for Technology Independence
These initiatives align with India’s broader Atmanirbhar Bharat objectives, reducing import dependency while increasing domestic manufacturing capacity. Strategic partnerships enrich India’s semiconductor sector through contributions from international companies including Intel and Lockheed Martin.
Industry analysts believe 2025 marks a defining moment for India’s semiconductor manufacturing capabilities. With state-level incentives and multinational collaboration, the foundation for sustained growth appears solid, supporting strategic autonomy goals while creating significant economic opportunities across multiple states.
