India has taken a monumental leap in its quest to become a global semiconductor powerhouse. On August 12, 2025, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved four landmark semiconductor projects under the India Semiconductor Mission (ISM) across Odisha, Punjab, and Andhra Pradesh, with a combined investment of ₹4,600 crore. This move brings the nation’s tally of sanctioned semiconductor projects to 10, spanning six states and total projected investments of ₹1.60 lakh crore.

Why Semiconductors Matter for India

Semiconductors are the bedrock of modern digital life—powering everything from smartphones and electric vehicles to defense systems and data centers. Until recently, India’s semiconductor strength lay in chip design, employing over 20% of the world’s chip designers, but lacking critical capacity in fabrication and manufacturing due to high costs, technical complexity, and resource requirements.

To address these gaps, the Semicon India Programme launched in December 2021 with a ₹76,000 crore outlay, offering up to 50% fiscal support for eligible projects, infrastructure, research, and talent-building initiatives. The government’s proactive stance has positioned India to capitalize on global “chip wars” and supply chain diversification trends, as witnessed between the US and China.

Unpacking the Four New Projects

Each new project introduces next-generation technologies and international partnerships, marking India’s assertive push on advanced semiconductors:

1. SiCSem Private Limited (Odisha)

Collaboration: UK-based Clas-SiC Wafer Fab Ltd.

Focus: India’s first commercial silicon carbide (SiC) compound semiconductor fabrication facility in Bhubaneswar.

Output: 60,000 SiC wafers, 96 million packaged units annually.

Applications: EVs, defense, solar inverters, data centers, railways, and more.

Investment: Approx. ₹2,066 crore (part of total).

Significance: SiC technology is vital for high-efficiency, high-power applications, complementing research at IIT Bhubaneswar.

2. 3D Glass Solutions Inc. (Odisha)

Backing: Supported by US chip major Intel.

Specialty: Advanced packaging with embedded glass substrates—glass interposers, 3D Heterogeneous Integration (3DHI) modules.

Projection: 69,600 glass panel substrates, 50 million assembled units, and 13,200 3DHI modules per year.

Fields: Defense, AI, RF comms, automotive, photonics.

Investment: Approx. ₹1,943 crore.

Impact: First facility for advanced glass-based substrates in India, enabling miniaturized, high-density chips for cutting-edge tech.

3. Continental Device India Private Limited (CDIL) (Punjab)

Expansion: Discrete semiconductor manufacturing in Mohali.

Products: MOSFETs, IGBTs, Schottky diodes, transistors.

Annual Capacity: 158.38 million units.

End Uses: EV charging, renewables, industrial equipment, communication.

Relevance: Boosts India’s standalone chip strength for energy, automotive, and industrial applications.

4. Advanced System in Package Technologies (ASIP) (Andhra Pradesh)

Partner: South Korea’s APACT Co. Ltd.

Objective: Establishment of an Outsourced Semiconductor Assembly and Test (OSAT) unit.

Throughput: 96 million units per annum.

Coverage: Packaging and testing for devices in mobile, automotive, and electronics.

Strategic Role: Entry-level OSAT to address immediate packaging/testing needs, paving way for future advancement.

Economic, Strategic, and Talent Impact

These projects are projected to directly create more than 2,000 high-skilled jobs and catalyze many more indirectly. The economic impact is substantial: India currently imports around $24 billion worth of chips annually; these projects will help curb that dependence, strengthen local supply chains, and boost GDP contributions by an estimated $110 billion by 2030.

Strategically, focusing on SiC and 3D packaging places India at the forefront of semiconductor innovation, with Prime Minister Modi’s vision emphasizing a 20-year roadmap for sustained ecosystem development.

Diverse Ecosystem Support

Research Institutions: 278 academic institutions, 72 startups receive chip design support.

Students: Over 60,000 students benefit from talent programs.

Design Incentives: In July 2025 alone, 23 chip design projects were announced with up to 50% prototyping cost coverage and sales incentives.

Challenges Ahead

Despite tremendous momentum, challenges remain:

Raw Material Imports: 99% still sourced externally.

Talent Crunch: Addressed partly with education, but global competition with Taiwan, South Korea, the US persists.

Global Competition: The long road to rival established fab giants, requiring consistent investment and innovation.

Yet, through the ISM’s targeted fiscal subsidies, international collaborations, and championing of advanced technologies, India aims to command 5-10% of global semiconductor manufacturing capacity and foster a “cluster effect” akin to Taiwan’s Hsinchu Science Park.

Public Reaction and the Road Forward

The public, industry, and political response has been strongly positive. On X (formerly Twitter), Prime Minister Modi hailed the decisions as “game-changers for self-reliance,” asserting India’s rising strength in global technology. Thought leaders and industry associations lauded the government’s foresight in cementing India’s place in the semiconductor ecosystem.

Conclusion

With these approvals, India positions itself at the cusp of a semiconductor revolution. While hurdles remain, rapid progress under the Semicon India Programme is set to bolster the nation’s manufacturing, technological sovereignty, and strategic resilience. As global geopolitics drive supply chain realignment, India emerges as not just a consumer but a creator—and shaper—of the world’s digital future.