New Delhi, August 13, 2025 | SKY LINK TIMES
In a major boost to India’s semiconductor manufacturing ambitions, the Union Cabinet has approved four new semiconductor assembly and testing plants under the India Semiconductor Mission, with a combined investment of ₹4,594 crore. The new units will be set up in Odisha, Punjab, and Andhra Pradesh, marking a significant expansion beyond Gujarat, which has so far attracted the bulk of such projects.
Two Major Chip Plants for Odisha
Odisha will see the establishment of two Assembly, Testing, Marking and Packaging (ATMP) facilities in Bhubaneswar:
- SiCSem Pvt Ltd will invest ₹2,066 crore to produce silicon carbide-based diodes and MOSFETs with a capacity of 96 million chips annually.
- 3D Glass Solutions Inc., backed by investors including Intel and Lockheed Martin, will set up a ₹1,943 crore ATMP plant with a capacity of 50 million chips annually.
Advanced Packaging Unit in Andhra Pradesh
Advanced System in Package Technologies (ASIP) will establish a semiconductor Plants in Andhra Pradesh in collaboration with APACT Co. Ltd, South Korea. With an annual capacity of 96 million units, the products will cater to mobile phones, set-top boxes, automobiles, and other electronics.
Brownfield Expansion in Punjab
Continental Device India Ltd (CDIL) will expand its Mohali, Punjab facility to produce high-power discrete semiconductor devices such as MOSFETs, IGBTs, Schottky Bypass Diodes, and transistors in both silicon and silicon carbide. The upgraded unit will have an annual output of 158.38 million units, targeting sectors like electric vehicles (EVs), renewable energy, industrial automation, and communication infrastructure.
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Part of a Larger Semiconductor Push
With these new approvals, the government has now greenlit 10 semiconductor-related plants under the ₹76,000 crore India Semiconductor Mission. Previously approved projects include:
- The Tata-PSMC fabrication plant (~$11 billion)
- Assembly and testing plants by Micron Technology, Tata, Murugappa Group-Renesas, Kaynes Semicon, and HCL-Foxconn
Some of these facilities are in advanced construction stages, with India’s first indigenously manufactured chip expected later this year.
A Strategic Move Beyond Gujarat
This expansion into Odisha, Punjab, and Andhra Pradesh signals the Centre’s intent to decentralize semiconductor production, ensuring balanced regional growth in the electronics manufacturing ecosystem.
In August 2024, reports indicated that the government had prepared a fresh $15 billion blueprint for Phase 2 of the India Semiconductor Mission, which will extend capital support for raw materials and specialty gases used in chipmaking.
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