Government gives approval for semiconductor manufacturing facilities in Odisha, Punjab and Andhra Pradesh

12th August 2025, New Delhi: The central government has approved semiconductor manufacturing projects worth ₹4600 crores (cumulative) in Odisha, Punjab, and Andhra Pradesh. The projects approved include setting up of manufacturing facility for Silicon Carbide based compound semiconductor in Odisha.

The timing of this announcement is critical as India and the US are yet to sign a trade deal, and President Trump has announced 50% tariffs on Indian imports. The government has been pushing the self-reliance agenda for a considerable period, and ISM is a critical part of India becoming a hub for semiconductor manufacturing, which is a vital component in computing, automobile, and other key sectors.

The projects approved today are from SiCSem, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc., and Advanced System in Package (ASIP) Technologies. The project is expected to generate employment for over 2000 skilled professionals in the three states. Furthermore, the plants will help create numerous additional jobs for semi-skilled workers at various levels.

It is anticipated that these manufacturing facilities will be a critical step in projecting India as a reliable manufacturer of semiconductors and will improve the country’s position in the global supply chain. The combined effect of these initiatives, along with the country’s growing chip design capabilities, and government-funded infrastructure (academic and business), shall be seen in the future.

This development is also in line with the improvement in electronics manufacturing and mobile production, both of which have increased 8 times and 28 times, respectively, in the past decade.

Source: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2155456#:~:text=These%20four%20approved%20proposals%20will,creation%20of%20many%20indirect%20jobs.