The Union Cabinet on Tuesday cleared four semiconductor projects with a combined investment of Rs 4,594 crore, which would come up in Odisha, Punjab and Andhra Pradesh, Electronics and IT minister Ashwini Vaishnaw said.
The projects have been approved under the India Semiconductor Mission, which has an outlay of Rs 76,000 crore to support chip-making facilities across the country. With these latest clearances, the number of projects sanctioned under the incentive scheme has reached 10, with total committed investments of around Rs 1.6 lakh crore across six states.
Expanding India’s Semiconductor Footprint
“Cabinet has approved four semiconductor plants that will be set up in Odisha, Punjab and Andhra Pradesh,” Vaishnaw said.
In Odisha, SiCsem Pvt Ltd will establish a silicon carbide semiconductor plant in Bhubaneswar at a cost of Rs 2,066 crore. “Silicon carbide is a very robust material and can sustain at high temperatures. Silicon carbide is used in our missiles, satellites, telecom towers, rockets, railway engines, etc,” Vaishnaw said. The plant will have an annual capacity of 96 million chips.
Also in Odisha, a 3D Glass semiconductor manufacturing facility will be set up by Heterogeneous Integration Packaging Solutions Pvt Ltd with an investment of Rs 1,943 crore. Backed by US chip giant Intel, the project will also receive support from American aerospace major Lockheed Martin. It will produce 50 million units annually.
In Andhra Pradesh, Advanced System in Package Technologies will set up a chip packaging unit with an investment of Rs 468 crore and a capacity of 96 million chips a year.
The Growing Momentum of India’s Electronics Sector
Punjab will have a semiconductor project by electronics component maker CDIL. The Rs 117 crore plant will have an annual production capacity of 158 million units.
Vaishnaw said that the country’s electronics manufacturing sector has expanded sixfold to Rs 12 lakh crore in the past 11 years. Electronics exports have increased eightfold to Rs 3.3 lakh crore, while mobile phone production has surged 28 times to Rs 5.5 lakh crore.
The minister also said that India will host Semicon India 2025 in collaboration with Singapore, Malaysia, Japan and South Korea from September 2 to 4.
