Four new chip plants cleared

By Admin

13 Aug, 2025

Boosting India’s semiconductor ecosystem
In a major push to strengthen India’s semiconductor manufacturing capabilities, the Union Cabinet has approved the establishment of four new semiconductor units under the India Semiconductor Mission (ISM). This decision takes the total number of semiconductor units in India to 10, with a combined investment of ₹4,594 crore, and aims to raise the country’s electronics value addition from the current 20% to over 30%.

Strategic locations and investments
The newly approved units will be set up in Bhubaneswar (Odisha), Andhra Pradesh, and Mohali (Punjab). The projects include:

• SiCSem Pvt. Ltd. – Odisha – ₹2,066 crore investment to produce silicon carbide-based diodes and MOSFETs.
  
  

• Heterogeneous Integration Packaging Solutions Pvt. Ltd. (HIPSPL) – Odisha – ₹1,943 crore investment to produce 70,000 glass panels annually.
  
  

• Continental Device India Pvt. Ltd. (CDIL) – Mohali – ₹117 crore investment to produce up to 158 million high-power discrete semiconductor units annually.
  
  

• Advanced System in Package Technologies Pvt. Ltd. (ASIP) – Andhra Pradesh – ₹468 crore investment to produce 96 million chips used in consumer electronics annually.
  
  

Why silicon carbide matters
Highlighting a shift in the global semiconductor industry, Electronics and IT Minister Ashwini Vaishnaw noted that silicon carbide (SiC) is gaining preference over traditional silicon due to its stability under high temperatures and voltages ideal for applications such as missiles and rockets. A dedicated silicon carbide research unit at IIT Bhubaneswar, set up with ₹45 crore, has already achieved breakthroughs in wafer production.

Timeline and future prospects
Construction of these facilities is expected to start within the next six months, mirroring the pace of the six earlier-approved plants. The SiCSem facility in Odisha is projected to be completed by 2027. According to Vaishnaw, India could see its first “made-in-India” chip albeit a packaged one within the next two to three months, with three Gujarat-based facilities vying for the honor.

National and global significance
Prime Minister Narendra Modi hailed the decision as a milestone in India’s journey toward becoming a global semiconductor hub, emphasizing its potential to boost manufacturing capacity, create high-skilled jobs, and strengthen India’s position in the global supply chain. Industry leaders, including ICEA Chairman Pankaj Mohindroo, see this as a critical step toward meeting 50–60% of India’s semiconductor demand within the next decade, in line with the nation’s self-reliance and friend-shoring strategies.

Conclusion
With the ISM’s ₹76,000 crore outlay and a growing portfolio of semiconductor projects across multiple states, India is not just catching up it’s setting the stage to be a pivotal force in the global semiconductor industry within the next 15 years.