Union Cabinet Greenlights ₹4,594 Crore for Semiconductor Projects

Quick Summary

• The Union Cabinet has approved four new semiconductor projects worth ₹4,594 crore.
• Projects are located in Odisha (two),Punjab,and Andhra Pradesh.
• Previously approved six semiconductor projects have a combined capacity of producing 24 billion chips annually.
• A silicon carbide plant will be established in Bhubaneswar, Odisha.It will focus on advanced research in partnership wiht IIT Bhubaneswar.
• A 3D Glass factory is also set up in Odisha:

– Includes investment from Intel and other leading companies like Lockheed Martin.
– Technology applications span aerospace, defense, radar systems, wireless communication, and high-power computing racks.

• Continental device India Pvt Ltd (CDIL), along with a Korean partner firm, will manufacture devices like mosfets in Punjab.
• Advanced System in Package Technologies Pvt Ltd (ASIP) is developing another plant in Andhra pradesh.

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Indian Opinion analysis

the declaration of four new semiconductor projects signals India’s increasing commitment towards establishing itself as a global player in the electronics manufacturing ecosystem. By identifying semiconductors as “foundational” to being a developed nation, the government underscores thier strategic importance for India’s technological self-reliance.

With an ecosystem supported by domestic institutions like IIT Bhubaneswar and partnerships with international firms such as Intel and Korean collaborators, this initiative demonstrates a structured approach aimed at both research innovation and scale manufacturing. Key applications – including aerospace and defence – suggest dual-use benefits across civilian industries as well as national security domains.

While previous projects reportedly produced notable chip capacity of 24 billion annually, achieving operational efficiency across multiple states remains critical to realizing outcomes from these new investments effectively. If scaled successfully over time-with continued international cooperation-this could bolster India’s position amidst growing global demand for semiconductors.