Cabinet approves Rs 4,594 cr for four semiconductor plants in three states

New Delhi: The Union Cabinet has sanctioned four semiconductor projects with a combined investment of Rs 4,594 crore, to be established in Odisha, Punjab, and Andhra Pradesh, Information and Broadcasting Minister Ashwini Vaishnaw announced on Tuesday. The approvals fall under the India Semiconductor Mission, which aims to bolster domestic chip production through a Rs 76,000 crore support programme.

“Cabinet has approved four semiconductor plants that will be set up in Odisha, Punjab and Andhra Pradesh,” Vaishnaw stated.

In Odisha, Bhubaneswar will see the development of a silicon carbide semiconductor plant by SiCsem Pvt Ltd, valued at Rs 2,066 crore. “Silicon carbide is a very robust material and can sustain high temperatures. It is used in our missiles, satellites, telecom towers, rockets, and railway engines,” the minister noted. The facility is projected to produce 9.6 crore chips annually.

Also in Odisha, Heterogenous Integration Packaging Solutions Pvt Ltd, backed by US chip major Intel, will invest Rs 1,943 crore in a 3D Glass semiconductor manufacturing unit, with a targeted capacity of 5 crore units per year. The project will receive support from US firm Lockheed Martin.

Andhra Pradesh will host a chip packaging facility by Advanced System in Package Technologies, with an investment of Rs 468 crore and an annual output capacity of 9.6 crore chips.

In Punjab, CDIL will set up a semiconductor project worth Rs 117 crore, expected to produce 15.8 crore units annually.

Highlighting the sector’s growth, Vaishnaw said the country’s electronics manufacturing value has risen sixfold to Rs 12 lakh crore in 11 years, exports have increased eightfold to Rs 3.3 lakh crore, and mobile production has grown 28 times to Rs 5.5 lakh crore.

India will also host Semicon India 2025 from September 2 to 4 in collaboration with Singapore, Malaysia, Japan, and Korea.