Ashwini Vaishnaw Announces Rs 4,594 Crore for Four New Semiconductor Plants

• Union Cabinet approves four new semiconductor manufacturing projects worth Rs 4,594 crore in Odisha, Andhra Pradesh, and Punjab.
• Projects by SiCSem, HIPSPL, CDIL, and ASIP Technologies to create over 2,000 skilled jobs and cover the full semiconductor ecosystem.
• Part of India’s push for self-reliance in electronics, taking total approved semiconductor units to 10 with Rs 1.6 lakh crore investment.

The Union Cabinet has cleared four new semiconductor production projects under the India Semiconductor Mission (ISM) with a combined investment of Rs 4,594 crore. The projects would be set up in Odisha, Andhra Pradesh, and Punjab as a major move towards augmenting India's indigenous semiconductor manufacturing capacity.

The sanctioned projects comprise two units in Odisha, Bhubaneswar, by SiCSem Pvt Ltd and Heterogeneous Integrated Packaging Solutions Pvt Ltd (HIPSPL). Continental Device India Pvt Ltd (CDIL) will add a new facility at its existing unit in Mohali, Punjab, and Advanced System in Package (ASIP) Technologies will establish a new unit in Andhra Pradesh. Overall, these projects are likely to create about 2,034 skilled positions at the three states.

Union Minister of Electronics and Information Technology Ashwini Vaishnaw pointed out that these projects cover the whole semiconductor ecosystem of design, wafer fabrication, packaging, component manufacturing, assembly, testing, and high-volume final production. The output of these new factories is projected to find applications in different sectors like defence equipment, electric vehicles, railways, fast chargers, data centre racks, consumer appliances, and solar power inverters.

Also Read: India's Semiconductor Sector Gains Momentum with $21 Billion Project Pipeline

The government plans to fast-track the setting up of these units, with output likely to start in 2-3 years, due to simplified clearances from concerned authorities. This is a part of India's larger plan to enhance its role in the world's semiconductor supply chain and build technological self-reliance in strategic electronics infrastructure.

With these fresh approvals, India currently has a total of ten approved semiconductor manufacturing facilities, with a combined investment of around Rs 1.6 lakh crore in six states. This is a reflection of the government's emphasis on bolstering the semiconductor manufacturing strength of the country and minimizing its dependence on imports.