The Union Cabinet has approved four new semiconductor plants with a total investment of Rs 4,594 crore, marking a significant boost for India's chip manufacturing industry. The projects are planned for Odisha, Andhra Pradesh, and Punjab, with one unit backed by U.S. tech giants Intel and Lockheed Martin.
Information and Broadcasting Minister Ashwini Vaishnaw, who announced the approvals, stated that the first "made-in-India" chip from a separate, ongoing project is expected to be ready in two to three months. He also noted that the new plants will help increase the share of locally made components in electronics products from the current 20 per cent to 30 per cent. All new plants are expected to be operational within two to three years.
Breakdown of the new plants
The four new plants include:
- 3D Glass Semiconductor Packaging Unit: Located in Odisha and backed by Intel, Lockheed Martin, and Applied Materials, this plant will be set up by Heterogenous Integration Packaging Solutions Pvt Ltd. With an investment of Rs1,943 crore, it will produce 5 crore units annually, using advanced 3D Glass packaging technology. This is the first such project involving Intel.
- Silicon Carbide Plant: Set up by SiCsem Pvt Ltd in Bhubaneswar, Odisha, this Rs2,066 crore plant will produce 9.6 crore chips per year. Silicon carbide is a highly robust material used in strategic defense and aerospace applications. The project is also supported by Lockheed Martin.
- Chip Packaging Plant: This facility in Andhra Pradesh, developed by Advanced System in Package Technologies in partnership with South Korea’s APACT Company, will have an investment of Rs 468 crore and an annual capacity of 9.6 crore units for use in consumer electronics and automotive products.
- Semiconductor Project: Located in Punjab and established by electronics component maker CDIL, this project will have a Rs 117 crore investment and an annual production capacity of 15.8 crore units.
Broader impact and future outlook
Vaishnaw highlighted the rapid growth of India's electronics manufacturing sector, which has grown sixfold to Rs 12 lakh crore in the past 11 years. He also announced that India will host Semicon India 2025 from September 2-4 in partnership with Singapore, Malaysia, Japan, and Korea.
These approvals bring the total number of chip plants in India to 10, with a combined investment commitment of approximately Rs 1.6 lakh crore. Vaishnaw also noted that India is developing a skilled workforce for the semiconductor industry and expects Indian manpower to be a key strength globally.
Other developments:
- IIT Bhubaneswar has launched a research unit for silicon carbide semiconductors with a Rs 45 crore investment and has successfully made vapor from silicon carbide powder.
- SiCsem Private Limited's plant in Bhubaneswar will be the country's first commercial compound fabrication unit, set up in collaboration with UK-based Class-SiC Wafer Fab Limited.
- Advanced System in Package Technologies' plant in Andhra Pradesh will produce chips for mobile phones, set-top boxes, and automotive applications, in a technical partnership with South Korea's APACT Company Limited.
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