India Advances Semiconductor Manufacturing Sector

The Union Cabinet of India, led by Prime Minister Narendra Modi, has approved four semiconductor manufacturing projects under the India Semiconductor Mission (ISM) with a total investment of approximately ₹4,600 crore. This decision is part of the government's broader strategy to enhance semiconductor production within India and strengthen the electronic manufacturing ecosystem.

Key Highlights:

• Total Approved Projects: With these latest approvals, the number of sanctioned projects under ISM has reached 10, with a cumulative investment of around ₹1.60 lakh crore across six states.

• Employment Generation: The new proposals are expected to create employment for approximately 2,034 skilled professionals, thereby catalyzing indirect job creation.

• Locations of New Projects:

  • Odisha:

    • SiCSem is set to establish India's first commercial compound semiconductor manufacturing facility in Info Valley, Bhubaneshwar. This plant will focus on Silicon Carbide (SiC) devices with an annual production capacity of 60,000 wafers and 96 million units for packaging. Applications include missiles, defense equipment, electric vehicles (EVs), renewable energy systems, and consumer electronics.
    • 3D Glass Solutions Inc. plans to set up a vertically integrated advanced packaging and embedded glass substrate unit, which will deploy cutting-edge packaging technology. This facility aims for an annual capacity of about 69,600 glass panel substrates, 50 million assembled units, and 13,200 3D Heterogeneous Integration (3DHI) modules. The products will cater to sectors such as defense, AI, and telecommunications.

  • Punjab:

    • Continental Device India Private Limited (CDIL) will expand its facility in Mohali to produce high-power discrete semiconductor devices such as MOSFETs, IGBTs, and Schottky diodes. This brownfield expansion is expected to have an annual capacity of 158.38 million units, targeting automotive electronics and renewable energy systems.

  • Andhra Pradesh:

    • Advanced System in Package (ASIP) Technologies will establish a manufacturing unit in partnership with APACT Co. Ltd., South Korea, aiming for an annual capacity of 96 million units. Its products will serve applications in mobile devices and other electronic products.

• Strategic Importance: These projects are crucial as the demand for semiconductors in telecommunication, automotive, data centers, and consumer electronics continues to grow. They align with India’s objective of achieving self-sufficiency (Atmanirbhar Bharat) in semiconductor production.

• Support for Education and Innovation: The semiconductor initiative is bolstered by government support through talent development programs, benefitting over 60,000 students across 278 academic institutions and 72 startups.

• Significance of the Approvals: The approved projects represent a significant enhancement of India’s semiconductor ecosystem, including the establishment of the country’s first commercial compound fab and an advanced glass substrate packaging unit. These initiatives complement the existing chip design capabilities in India and are expected to attract further investments into the sector.

Through these measures, the Indian government aims to elevate its position in the global semiconductor landscape and reduce dependency on foreign technology, while also promoting technological advancements and job creation within the country.

Summary in Bullet Points:

• Union Cabinet approves 4 semiconductor manufacturing projects under ISM with ₹4,600 crore investment.
• Approved projects expected to generate 2,034 skilled jobs.
• Cumulative investment across 10 projects reaches ₹1.60 lakh crore.
• Locations of new projects:
  • Odisha: SiCSem and 3D Glass Solutions.
  • Punjab: Continental Device India.
  • Andhra Pradesh: ASIP Technologies.
• First commercial compound semiconductor fab and advanced packaging unit in India announced.
• Supportive government programs already benefiting over 60,000 students.
• Strategic goal: Achieve self-reliance in semiconductors (Atmanirbhar Bharat).
• Focus on high-demand applications including automotive, renewable energy, and defense.