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India Semiconductor Mission Enters New Phase with Focus on Compound Semiconductors and Advanced Packaging
New Delhi: In a significant push towards strengthening India’s semiconductor ecosystem, the Union Cabinet chaired by Prime Minister Narendra Modi has approved four new semiconductor manufacturing projects under the India Semiconductor Mission (ISM). With a total investment outlay of around ₹4,600 crore, these facilities will be set up in Odisha, Punjab, and Andhra Pradesh and are expected to create over 2,000 direct jobs and numerous indirect employment opportunities.
This latest approval brings the total number of projects sanctioned under ISM to 10, with a cumulative investment of approximately ₹1.60 lakh crore across six states. The move marks a decisive step in advancing India’s capabilities in compound semiconductors and advanced packaging technologies, both considered crucial for the future of electronics manufacturing.
Details of Approved Projects
The newly sanctioned projects are from SiCSem, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc. (3DGS), and Advanced System in Package (ASIP) Technologies.
1. SiCSem Private Limited – Odisha
SiCSem, in collaboration with Clas-SiC Wafer Fab Ltd., UK, will establish India’s first commercial compound semiconductor fabrication facility in Info Valley, Bhubaneswar. This plant will specialize in Silicon Carbide (SiC) devices, which offer superior efficiency and durability compared to traditional silicon-based semiconductors.
The facility will have an annual capacity of 60,000 wafers and 96 million packaged units. These products will cater to high-demand sectors such as missiles, defence equipment, electric vehicles (EVs), railways, fast chargers, data centres, consumer appliances, and solar inverters.
2. 3D Glass Solutions Inc. – Odisha
3DGS will set up a vertically integrated advanced packaging and embedded glass substrate facility—bringing cutting-edge packaging technology to India for the first time. The plant’s advanced capabilities will include glass interposers with passives, silicon bridges, and 3D Heterogeneous Integration (3DHI) modules.
The unit’s planned capacity includes 69,600 glass panel substrates, 50 million assembled units, and 13,200 3DHI modules annually. Applications will span defence, high-performance computing, artificial intelligence (AI), RF and automotive electronics, photonics, and co-packaged optics.
3. Advanced System in Package (ASIP) Technologies – Andhra Pradesh
ASIP Technologies will establish a semiconductor manufacturing unit in Andhra Pradesh in partnership with APACT Co. Ltd., South Korea. The unit will have an annual output of 96 million units, producing semiconductor packages used in mobile phones, set-top boxes, automotive systems, and other electronics.
4. Continental Device India Limited (CDIL) – Punjab
CDIL will expand its existing discrete semiconductor manufacturing facility in Mohali, Punjab. The expansion will focus on high-power devices such as MOSFETs, IGBTs, Schottky bypass diodes, and transistors—both in Silicon and Silicon Carbide.
With a capacity of 158.38 million units per year, these products will serve critical applications in EVs, charging infrastructure, renewable energy systems, industrial electronics, power conversion, and communication networks.
Boost to India’s Semiconductor Ecosystem
According to government officials, these approvals are a milestone for India’s self-reliance in semiconductor manufacturing. They bring not only advanced fabrication technologies but also high-value packaging solutions—areas where India has so far relied heavily on imports.
The addition of compound semiconductors and glass-based substrate packaging units is expected to complement India’s fast-growing chip design sector. Over the past few years, the government has been actively supporting design infrastructure across 278 academic institutions and 72 start-ups, helping over 60,000 students gain specialized training in semiconductor design and manufacturing.
Strategic Importance
Semiconductors are essential for modern industries, powering devices in telecom, automotive, data centres, consumer electronics, and industrial automation. The global shift towards electric mobility, renewable energy, AI, and advanced computing has amplified the demand for high-performance chips.
By fostering domestic manufacturing in this strategic sector, India aims to reduce its import dependence, strengthen supply chain resilience, and position itself as a global semiconductor hub.
These initiatives also align with the vision of Atmanirbhar Bharat, ensuring that India not only meets domestic needs but also emerges as a competitive exporter of advanced semiconductor products.
Future Outlook
With 10 semiconductor projects now approved and in various stages of execution, India is set to witness rapid progress in this critical sector. Industry experts believe that the collaboration between global technology leaders and Indian manufacturing capabilities will create a world-class semiconductor ecosystem in the country within the next five years.
The approved projects are expected to start operations in phases, with the first commercial outputs anticipated by 2027. Once operational, these facilities will not only boost domestic supply but also open doors to international partnerships and exports.
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