Union Minister for Electronics and Information Technology Ashwini Vaishnaw. File Photo | PTI
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India approves four new semiconductor projects worth Rs. 4600 crore; first chip likely this year

With these new approvals, the total number of projects sanctioned under ISM has reached ten, spread across six states and attracting total investments of around Rs 1.60 lakh crore.

Rakesh Kumar

NEW DELHI: The government on Tuesday approved four additional semiconductor manufacturing projects in the states of Odisha, Punjab, and Andhra Pradesh under the India Semiconductor Mission (ISM).

These projects, involving a cumulative investment of approximately Rs 4,600 crore, are expected to generate employment for 2,034 skilled professionals. With these new approvals, the total number of projects sanctioned under ISM has reached ten, spread across six states and attracting total investments of around Rs 1.60 lakh crore.

The four newly approved companies are SiCSem Private Limited, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc. (3DGS), and Advanced System in Package (ASIP) Technologies.

SiCSem and 3DGS will establish their units in Info Valley, Bhubaneswar, Odisha. CDIL will expand its operations in Mohali, Punjab, while ASIP will set up its unit in Andhra Pradesh.

Minister for Electronics and Information Technology Ashwini Vaishnaw said that all four companies are expected to begin production within the next two to three years.

Speaking about the overall progress of the India Semiconductor Mission, the minister said that implementation of approved projects is advancing at a rapid pace and, most probably, India will witness the rollout of its first made-in-India semiconductor chip within this year.

SiCSem Private Limited, in collaboration with UK-based Clas-SiC Wafer Fab Ltd., will set up the country’s first commercial compound semiconductor fabrication facility focused on Silicon Carbide (SiC) devices. Located in Info Valley, Bhubaneswar, this fab will have an annual production capacity of 60,000 wafers and a packaging capacity of 96 million units. In the same location, US-based 3D Glass Solutions Inc. will establish a vertically integrated advanced packaging and embedded glass substrate unit.

ASIP Technologies will establish a semiconductor manufacturing facility in Andhra Pradesh in partnership with South Korea’s APACT Co. Ltd. With an annual capacity of 96 million units, the products manufactured here will cater to applications in mobile phones, set-top boxes, automobiles, and other electronic devices. Meanwhile, CDIL will expand its existing discrete semiconductor manufacturing facility in Mohali, Punjab. This brownfield expansion will focus on the production of high-power discrete devices such as MOSFETs, IGBTs, Schottky diodes, and transistors using both Silicon and Silicon Carbide technologies. The facility will have an annual capacity of 158.38 million units.

India began its semiconductor journey in 2021 with an approved incentive package of Rs 75,000 crore under ISM. Since then, significant progress has been made with the approval of ten major projects across six states, covering wafer fabrication, ATMP/OSAT, and compound semiconductor manufacturing. The key projects already underway include the Tata-PSMC fabrication unit in Dholera, Gujarat, with an investment of Rs 91,526 crore, set to produce 50,000 wafers per month for automotive and AI applications by 2026; the Micron ATMP facility in Sanand, Gujarat, with an investment of Rs 22,900 crore, which will focus on DRAM and NAND packaging and is expected to be operational by late 2025; Tata TSAT’s OSAT unit in Jagiroad, Assam, with a projected output of 48 million chips per day; Kaynes' OSAT facility in Sanand, Gujarat, producing over six million chips per day for industrial and telecom use; and the HCL-Foxconn joint venture in Uttar Pradesh, which aims to manufacture 36 million display driver chips per month by 2027.

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