Leaders hail approval of 4 semiconductor plants as a game-changer for self-reliance

NEW DELHI: The Union Cabinet, led by Prime Minister Narendra Modi, has approved four new semiconductor manufacturing projects worth ₹4,600 crore in Odisha, Punjab and Andhra Pradesh. These projects will significantly boost India’s semiconductor ecosystem, promoting self-reliance and positioning the country as a global technology hub.

The announcement has drawn widespread praise from Union Ministers, state leaders and industry representatives who took to X to express their support.

Union Home Minister Amit Shah on the social media platform X wrote, “Bharat is gaining Atmanirbharta in semiconductor manufacturing. Congratulations to our sisters and brothers in Andhra Pradesh, Odisha, and Punjab on the approval of four new semiconductor units by PM @narendramodi Ji at the Union Cabinet today. These units will lay the foundation for India to emerge as the global technology capital while creating massive employment opportunities for our youth.”

1. Semiconductor unit in Odisha – SiCSem
Location: Bhubaneswar

Investment: ₹2,066 Cr
Capacity: SiC-based fab: 60k wafers/year; ATMP: 96 million units/year pic.twitter.com/iYSS6Je9vV

— Ashwini Vaishnaw (@AshwiniVaishnaw) August 12, 2025

Union Minister for Road Transport and Highways, Nitin Gadkari, stated, “These units will create direct employment opportunities for 2,034 skilled professionals and are expected to catalyse the electronics manufacturing ecosystem, generating numerous indirect jobs. With these approvals, the total number of sanctioned projects under ISM rises to 10, representing cumulative investments of about Rs 1.60 lakh crore across 6 states.”

Union Defence Minister Rajnath Singh also hailed the decision, calling it a major boost for self-reliance in critical sectors. “This landmark decision will accelerate India’s self-reliance in critical sectors such as defence, electric mobility, artificial intelligence and high-tech manufacturing. It will generate thousands of jobs, boost the domestic electronics ecosystem, strengthen the supply chain and position India as a key global hub in semiconductor manufacturing.”

Union Minister Dharmendra Pradhan described the development as a transformative moment for Odisha. “Approval for setting up an integrated facility for compound semiconductor fab and ATMP unit in Bhubaneswar and a vertically integrated advanced packaging and embedded glass substrate unit in Info Valley, Khordha, under the India Semiconductor Mission by the #Cabinet led by Hon’ble PM @narendramodi ji is a significant step towards positioning Odisha as a significant player in the semiconductor innovation and manufacturing value chain as well as establishing India as a semiconductor powerhouse”, he said

Union IT and information and Railways Minister, Ashwini Vaishnaw, wrote, “The Cabinet has approved 2 new semiconductor projects worth Rs 4,009 crore in Odisha. This will accelerate the growth of technology-based industries in the state.”

Andhra Pradesh Chief Minister N Chandrababu Naidu expressed gratitude for the approval of a major project in the state. “Grateful to Hon’ble PM @narendramodi ji for approving the ASIP Technologies-APACT (S. Korea) semiconductor facility in Andhra Pradesh. With 96M units/year in advanced chip packaging for mobiles, set-top boxes, automotive ECUs & consumer electronics, this will enhance India’s backend semiconductor manufacturing capacity and foster a complete electronics ecosystem in AP.”

Nara Lokesh, Minister for Human Resources Development of Andhra Pradesh, also lauded the initiative, calling it a result of the double-engine government.

“Semiconductor manufacturing comes to AP, driven by a double engine sarkar! I am grateful to the Hon’ble Prime Minister @narendramodi ji for sanctioning a semiconductor manufacturing facility to AP as part of a Rs. 4,600 crore budgetary allocation. Advanced System in Package Technologies (ASIP) will be tying up with APACT Co., Ltd, South Korea, for an annual capacity of 96 million units. These will be used in mobile phones, set-top boxes, automobiles and other new-age electronics applications, and will greatly contribute to an Atmanirbhar Bharat.”

The official handle of India Semiconductor Mission (@SemiconIndia) added, “Reinforcing PM @narendramodi’s vision, Cabinet approves four (04) new semiconductor projects of total Rs 4,594 Crore in Odisha, Punjab and Andhra Pradesh under Semicon India Programme”

The leaders of Odisha were also elated with the announcement. The state will host two semiconductor plants as part of the current approval. Sampad Chandra Swain, Minister of Industries and Skill Development of Odisha, expressed his satisfaction as the cabinet approved two semiconductor projects–by SicSem Private Ltd and 3D Glass Solutions Inc–to be set up in the state, adding that the projects in the pipeline will now see greater potential in Odisha.

“This is certainly a positive development for Odisha as we move forward in the semiconductor industry,” Swain said. Two of the approved projects will come up in Odisha’s Info Valley, Bhubaneswar, making the state an emerging hub for the sector.

SiCSem Private Limited will set up the country’s first commercial compound semiconductor fabrication facility in Odisha, which will be capable of producing 60,000 wafers annually and packaging 96 million units. The second Odisha project, by 3D Glass Solutions Inc. (3DGS), will establish an advanced packaging and embedded glass substrate facility.

In Andhra Pradesh, Advanced System in Package (ASIP) Technologies will set up a semiconductor manufacturing unit with a capacity of 96 million units per year, catering to mobile devices, set-top boxes, automotive electronics, and other consumer applications, in collaboration with South Korea’s APACT Co. Ltd.

While in Punjab, Continental Device India Private Limited (CDIL) will expand its discrete semiconductor manufacturing facility in Mohali to produce high-power discrete semiconductor devices such as MOSFETs, IGBTs, and transistors.

Finally, Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), commented on the strategic importance of the projects and said, “We wholeheartedly congratulate the four newly approved semiconductor projects under the India Semiconductor Mission. The first commercial compound semiconductor fab, a world-class glass substrate packaging facility, and other advanced manufacturing investments reflect the clear vision of Prime Minister Narendra Modi and the decisive leadership of Ashwini Vaishnaw.”

“ICEA’s Semiconductor Leadership Forum and Semiconductor Product Design Leadership Forum will channel this momentum into a single, integrated agenda, scaling manufacturing, deepening design, mobilising capital, and developing talent for enduring global leadership,” Mohindroo added.

The approvals take the total India Semiconductor Mission (ISM) portfolio to 10 projects across six states with cumulative investments of Rs 1.6 lakh crore. The government said the move is in line with its vision of building a robust and self-reliant semiconductor ecosystem to support sectors ranging from defence to consumer electronics.

In Andhra Pradesh, Advanced System in Package (ASIP) Technologies, in collaboration with South Korea’s APACT Co. Ltd., will set up a semiconductor manufacturing unit with a capacity of 96 million units a year. The fourth project that was approved by the Union Cabinet is for Continental Device India Ltd. (CDIL) in Mohali, Punjab, which will expand the company’s discrete semiconductor manufacturing capacity. (ANI)