On August 12 2025, the Union Cabinet chaired by Prime Minister (PM) Narendra Modi approved the proposal to establish 4 new semiconductor assembly and testing facilities in states: Punjab, Odisha and Andhra Pradesh (AP) under its India Semiconductor Mission (ISM), with a total financial budget of Rs 4,600 crore.
- With this, the total number of approved projects under ISM has now reached to 10, with combined investments of about Rs 1.60 lakh crore in 6 states.
- These newly approved facilities are expected to generate 2,034 skilled jobs which would drive the electronic manufacturing ecosystem resulting in creation of several indirect job opportunities.
Exam Hints:
- What? Approval of 4 new semiconductor manufacturing units
- Approved: Union Cabinet chaired by PM Narendra Modi
- 4 New Facilities in States: Punjab (1), Odisha (2) and AP (1)
- Name of Companies Involved: SicSem Private Limited; 3D Glass Solutions Inc. (3DGs); Advanced System in Packaged Technologies (ASIP) and Continental Device India Private Limited (CDIL)
- Approved under: India Semiconductor Mission (ISM)
Key Details of 4 New Semiconductor Facilities:
SicSem Private Limited:
Investment Cost: SicSem Pvt. Limited in partnership with Clas-SiC Wafer Fab Limited, will set up India’s 1st commercial compound semiconductor fabrication facility in Bhubaneswar, Odisha, with an investment of Rs 2,066 crore, to produce silicon carbide-based diodes.
Annual Production: This Assembly,Testing, Marking and Packing (ATMP) facility is expected to produce 60,000 wafers annually, along with 96 million packaged units.
Applications: The products manufactured by the facility will be used in various sectors like: Electric Vehicles (EVs), Railway, Fast Chargers, Data Centre racks, among others.
3D Glass Solutions Inc. (3DGs):
Investment Cost: Another ATMP facility will be established by 3D Glass Solutions Inc. with an investment of Rs 1,943 crore, in Info Valley, Bhubaneswar, Odisha.
Key Components: The facility will feature a large variety of advanced technologies including glass interposers with passives and silicon (Si) bridges and 3-Dimensional Heterogeneous Integration (3DHI) modules.
Manufacturing Capacity: The facility is expected to manufacture nearly 69,600 glass panel substrates, 50 million assembled units, and 13,200 3DHI modules annually.
Applications: The products manufactured by the facility will be used in various sectors like: defence, high-performance computing, Artificial Intelligence (AI), photonics and co-packaged optics, among others.
CDIL:
Set up: Continental Device India Private Limited (CDIL) will expand its semiconductor manufacturing facility in Mohali, Punjab.
Manufacturing Capacity: The facility will produce 158.38 million units of high-power discrete semiconductors annually, which includes (Metal-Oxide-Semiconductor Field-Effect Transistors) MOSFETs, (Insulated Gate Bipolar Transistors) IGBTs, Schottky Bypass Diodes, and transistors.
Applications: The products manufactured by the facility will be used in various sectors like: automotive electronics including EVs and its charging infrastructure, Renewable Energy (RE) systems, power conversion applications, among others.
ASIP:
Location: Advanced System in Packaged Technologies (ASIP) will establish a semiconductor manufacturing unit in Andhra Pradesh (AP), under technology collaboration with APACT Co. Limited, South Korea.
Manufacturing Capacity: This newly approved facility is expected to manufacture 96 million units annually.
Applications: The products manufactured by the facility will be used in various sectors like: mobile phones, set-top boxes, automobile applications, and other electronic products.
India Semiconductor Mission (ISM):
Launched: ISM, a flagship programme of Government of India (GoI), was officially launched by the Ministry of Electronics & Information Technology (MeitY) in 2021 with total budget outlay of Rs 76,000 crore (or, around USD 10 billion).
Aim: It aimed to develop a full-stack semiconductor ecosystem locally, from design to manufacturing and testing.
Key Target: The mission has set the target to reduce India’s dependence on chip imports (at present, India imports 65%-70% of chip components, mostly from China), promote domestic production, and make India hub for chipmakers globally.
6 Semiconductor Units: So far, the GoI has approved 6 semiconductor manufacturing units: Micron Technology Inc. (in Sanand, Gujarat); Tata Electronics Private Limited (TEPL) (in Dholera, Gujarat); Tata Semiconductor Assembly and Test Pvt. Limited (TSAT) (in Morigaon, Assam); CG Power and Industrial Solutions Limited (in Sanand, Gujarat); Kaynes Technology India Limited (KTIL)(Sanand, Gujarat)
- In May 2025, the Union Cabinet approved a Joint Venture (JV) between HCL Group and Taiwanese electronics company Hon Hai Precision Industry Co., Limited (Foxconn), to set up semiconductor unit near Jewar Airport at the Yamuna Expressway Industrial Development Authority (YEIDA) in Uttar Pradesh (UP).
About Ministry of Electronic and IT (MeitY):</u
Union Minister- Ashwini Vaishnaw (Rajya Sabha member- Odisha)
Minister of State (MoS)- Jitin Prasada(Constituency- Pilibhit, Uttar Pradesh, UP)
