The Union Cabinet has approved four new semiconductor projects with an investment of ₹4,594 crore. Of these, two units will be set up in Odisha, one in Punjab, and one in Andhra Pradesh. SiCSem's silicon carbide plant in Bhubaneswar will be the largest investment at ₹2,066 crore, which will be useful in sectors such as defense, space, and railways.
New Delhi: The Union Cabinet approved four new semiconductor projects with an investment of ₹4,594 crore on August 12, 2025. Of these, two will be established in Odisha, one in Punjab, and one in Andhra Pradesh. SiCSem's ₹2,066 crore silicon carbide plant in Bhubaneswar will be crucial for high-temperature tolerance and use in defense, space, telecommunications, rockets, and railway engines. Other projects include HIPSPL (₹1,943 crore, Odisha), CDIL (₹117 crore, Punjab), and ASIP (₹468 crore, Andhra Pradesh).
Two Major Projects in Odisha
Two semiconductor units will be established in Bhubaneswar, Odisha. The first project will be of SiCSem Private Limited, with an investment of ₹2,066 crore. This plant will manufacture silicon carbide semiconductors. Its annual capacity will be 60 thousand wafers in SiC-based fabric and 96 million units in ATMP (Assembly, Test, Marking, and Packaging).
The second project will be of Heterogeneous Integration Packaging Solutions Private Limited (HIPSPL), which will also be located in Bhubaneswar. An investment of ₹1,943 crore will be made on this. It will produce 70 thousand glass panels, 50 million ATMP units, and 13 thousand 3DHI modules annually.
Mohali to Get New Semiconductor Hub
Continental Device India Private Limited (CDIL)'s semiconductor plant will be set up in Mohali, Punjab. An investment of ₹117 crore will be made in this project. Its capacity will be 158 million units per year. Mohali is already a well-known center for electronics manufacturing, so this unit will further strengthen the industry here.
Semiconductor Production to Increase in Andhra Pradesh Too
Advanced System in Package Technologies Private Limited (ASIP)'s plant will be set up in Andhra Pradesh. An investment of ₹468 crore will be made in this project, and its capacity will be 96 million units per year. This will be an important addition to electronics and hardware manufacturing in South India.
Growing Size of the Semiconductor Market
According to industry estimates, India's semiconductor market is growing rapidly. In 2023, this market was approximately $38 billion, which is estimated to reach between $45 and $50 billion in 2024-25. By 2030, it is expected to reach $100 to $110 billion. This means that the demand for chips and electronic components in India is expected to more than double in the coming years.
A Big Step Towards Self-Reliant India
This approval for semiconductor manufacturing is considered an important step towards the country's self-reliance. Until now, India has been largely dependent on other countries for semiconductor chips, especially Taiwan, South Korea, and China. With the commencement of these new projects, the infrastructure for chip manufacturing in the country will be strengthened, and export possibilities will also increase.
Help in Employment and Technological Development
These four projects will directly and indirectly create thousands of employment opportunities. Also, the technical knowledge and skills required for high-tech manufacturing will be developed in the country. Achieving self-reliance in semiconductor technology will give the country's tech industry an edge in global competition.
