Union Cabinet Approves Four New Semiconductor Projects Worth ₹4,600 Crore
The Union Cabinet, led by Prime Minister Narendra Modi, approved four new semiconductor manufacturing projects valued at ₹4,600 crore. These projects will be established in Odisha, Punjab, and Andhra Pradesh. This move aims to significantly boost India’s semiconductor ecosystem, promote self-reliance, and position the country as a global technology hub.
Widespread Praise From Leaders And Industry Experts
Union Ministers, state leaders, and industry representatives took to social media platform X to welcome the announcement. Union Home Minister Amit Shah 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.”
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 Shri @narendramodi Ji at the Union Cabinet today. These units will lay the… pic.twitter.com/zjv7wB9Ezm
— Amit Shah (@AmitShah) August 12, 2025
Employment Boost And Industry Impact
Union Minister for Road Transport and Highways, Nitin Gadkari, highlighted the job creation aspect, stating, “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 Cabinet, chaired by Prime Minister Shri @narendramodi Ji, has approved the establishment of 4 semiconductor manufacturing units in Odisha, Punjab, and Andhra Pradesh, with a total outlay of ₹4,600 crore under the India Semiconductor Mission (ISM).
These units will create… pic.twitter.com/N9H61Iegxz
— Nitin Gadkari (@nitin_gadkari) August 12, 2025
Strategic Importance For Self-Reliance
Union Defence Minister Rajnath Singh called the decision 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.”
The Union Cabinet, chaired by Prime Minister Shri @narendramodi ji, has approved 4 new semiconductor projects, including India’s first commercial compound fab and an advanced glass substrate unit in Odisha, Punjab and Andhra Pradesh with an investment of over ₹4,600 crore. This… pic.twitter.com/cRcCoJhNVy
— Rajnath Singh (@rajnathsingh) August 12, 2025
Odisha To Host Two Semiconductor Plants
Union Minister Dharmendra Pradhan emphasized Odisha’s role: “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.”
Union IT and Railways Minister Ashwini Vaishnaw shared, “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 Project Gains Appreciation
Andhra Pradesh Chief Minister N Chandrababu Naidu expressed gratitude for the approval of a major semiconductor facility 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.”
Acknowledgement From Andhra Pradesh HRD Minister
Lokesh Nara, Andhra Pradesh’s Human Resources Development Minister, lauded the initiative. “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.”
India Semiconductor Mission’s Official Statement
The India Semiconductor Mission’s official handle (@SemiconIndia) tweeted, “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.”
🚨 Boosting India’s chip power!
Reinforcing Hon’ble PM @narendramodi‘s vision, Cabinet approves four (04) new semiconductor projects of total ₹4,594 Crore in Odisha, Punjab and Andhra Pradesh under Semicon India Programmehttps://t.co/3n0tVOIDav#TechInnovation #ISM #SEMICON pic.twitter.com/Nq4GPjvOOm
— India Semiconductor Mission (@SemiconIndia) August 12, 2025
Odisha Industry Minister Expresses Optimism
Speaking to ANI, Sampad Chandra Swain, Odisha Minister of Industries and Skill Development, welcomed the approval of two semiconductor projects by SicSem Private Ltd and 3D Glass Solutions Inc. in the state. “This is certainly a positive development for Odisha as we move forward in the semiconductor industry,” Swain said.
Two projects will be set up in Odisha’s Info Valley, Bhubaneswar. SiCSem Private Limited will establish the country’s first commercial compound semiconductor fabrication facility capable of producing 60,000 wafers annually and packaging 96 million units. The second, by 3D Glass Solutions Inc. (3DGS), will build an advanced packaging and embedded glass substrate facility.
Projects in Andhra Pradesh and Punjab
In Andhra Pradesh, Advanced System in Package (ASIP) Technologies will establish a semiconductor manufacturing unit with an annual capacity of 96 million units. This facility will cater to mobile devices, set-top boxes, automotive electronics, and other consumer products, in partnership with South Korea’s APACT Co. Ltd.
In Punjab, Continental Device India Private Limited (CDIL) will expand its discrete semiconductor manufacturing plant in Mohali to produce high-power discrete semiconductor devices such as MOSFETs, IGBTs, and transistors.
Industry Leader Comments on Strategic Impact
Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), congratulated the new projects, saying, “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.”
Mohindroo added, “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.”
Total Investment and Future Outlook
With these approvals, the India Semiconductor Mission portfolio now includes 10 projects across six states, totaling investments of Rs 1.6 lakh crore. The government emphasized that these projects align with its vision of building a robust, self-reliant semiconductor ecosystem supporting critical sectors from defence to consumer electronics.
(With Inputs From ANI)
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