- Four new semiconductor manufacturing units have been approved, totalling $524 million in investment.
- This marks a significant step towards India’s goal of self-reliance in the semiconductor sector.
What happened: India approves new semiconductor projects under ISM
India has made a significant leap towards semiconductor self-reliance. On August 12, the Union Cabinet approved four new manufacturing units under the India Semiconductor Mission (ISM). This increases the total number of approved projects to 10, with the new investments adding $524 million. Overall, ISM’s semiconductor commitments now exceed $19 billion.
One of the key projects is the establishment of India’s first compound semiconductor fabrication plant in Odisha. This facility, developed by SiCSem Pvt. Ltd and UK-based Clas-SiC Wafer Fab Ltd, will produce 60,000 wafers and 96 million packaged units annually.
In addition, a new high-power semiconductor facility by Continental Device India Pvt. Ltd (CDIL) will be set up in Punjab. Another project by ASIP Technologies and South Korea’s APACT Co. Ltd in Andhra Pradesh will focus on packaging and testing, handling 96 million units annually.
Also read: Cyient invests $100M in semiconductor business to expand capacity
Also read: GlobalFoundries: Leading the charge in semiconductor innovation
Why it’s important
These initiatives are pivotal for India, aiming to narrow the gap with semiconductor giants like Taiwan and South Korea. They focus on fabrication, advanced packaging, and testing, all of which will enhance India’s role in global semiconductor supply chains.
Moreover, companies like Intel and Lockheed Martin are involved in some of the new projects, highlighting the strategic importance of national security and technological resilience. Amid rising global demand and geopolitical tensions, India’s growing manufacturing base will make it an increasingly trusted partner in global semiconductor networks.
These projects will also stimulate job creation and help establish India as a major player in the global semiconductor market.
