The Union Cabinet has cleared four new semiconductor projects worth ₹4,594 crore, Union Minister Ashwini Vaishnaw announced in New Delhi on Tuesday, August 12, 2025.

Calling semiconductors a “foundational, strategic industry,” Vaishnaw said no country could consider itself developed without a strong chip manufacturing ecosystem. The approved projects include two in Odisha, one in Punjab, and one in Andhra Pradesh.

According to the minister, India’s six previously sanctioned semiconductor projects have a combined annual capacity of producing 24 billion chips. The new projects will add to this capability, with a focus on advanced technologies, strategic materials, and specialised components.

Advanced Silicon Carbide Plant in Bhubaneswar

A key highlight is a silicon carbide manufacturing plant in Bhubaneswar. Describing it as a “strategic need for the country,” Vaishnaw said the facility would also serve as an advanced research hub, leveraging the expertise of IIT Bhubaneswar.

The minister explained that producing silicon carbide involves vaporising powder at 2,400 degrees and accreting it onto a crystal to form wafers—a process requiring high precision. Silicon carbide is critical for high-performance electronics used in sectors such as electric vehicles, defence, and aerospace.

3D Glass Manufacturing Unit in Odisha

Odisha will also host a 3D glass factory, with Intel as an investor. Vaishnaw said global firms like Lockheed Martin, along with private equity and venture capital players, are expected to participate.

The 3D glass technology—likened to a “multi-storey building” due to its layered structure—will be applied in aerospace, defence, radar systems, wireless communication, and high-power computing. This three-dimensional packaging method is designed to enhance performance and reduce space requirements in electronic systems.

Specialised Device Production in Punjab

In Punjab, Continental Device India Pvt Ltd (CDIL) will collaborate with a Korean partner to manufacture specific devices, including metal–oxide–semiconductor field-effect transistors (MOSFETs). These components are essential in modern electronics, from consumer gadgets to industrial equipment.

Advanced Packaging Facility in Andhra Pradesh

The fourth project will be established in Andhra Pradesh by Advanced System in Package Technologies Pvt Ltd (ASIP). The unit will focus on high-density packaging solutions that integrate multiple semiconductor components into compact, high-performance modules.

Vaishnaw emphasised that these projects, along with those already approved, represent a significant step toward self-reliance in semiconductor manufacturing. “This is precision work, and India is now building the capacity to do it at scale,” he said.

The investments are expected to strengthen India’s position in the global semiconductor supply chain and open opportunities for advanced research, skilled jobs, and foreign investment in high-tech manufacturing.