- India approved four more India Semiconductor Mission projects on Aug 12, 2025, taking the total to 10 with ~₹1.6 lakh crore (≈$18.2B) committed across six states.
- The new slate targets higher-value capabilities—India’s first commercial SiC compound semiconductor fab, advanced packaging (glass substrates and 3D heterogeneous integration), and scaled discrete power devices.
- Planned capacity spans 60,000 wafers/year plus 96M packaged units (SiCSem), 69,600 glass panels and 50M assembled units plus 13,200 3DHI modules (3DGS), 158.38M discrete devices (CDIL), and 96M units (ASIP).
- Policy momentum is backed by a fast-growing market, with India’s semiconductor end-demand projected to rise from ~$45–50B in 2024–25 to ~$100–110B by 2030 (~15% CAGR).
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The recent expansion under the India Semiconductor Mission signals a pivotal shift toward capturing higher-value segments of the semiconductor value chain. With the newly approved projects emphasizing SiC device fabrication, advanced packaging/substrate technologies, and discrete power and logic components, India is moving beyond mature-node assembly toward strategic capabilities that are critical for electric vehicles, renewable energy, defense, AI/HPC, and telecommunications applications.
Front-end manufacturing via SiC compound semiconductors (SiCSem), alongside high-throughput packaging firms like 3D Glass Solutions and ASIP Technologies, will enable local value capture in both upstream and downstream processes. The discrete device production by CDIL adds scale in power electronics—a segment with near-term domestic demand growth from EVs, charging infrastructure, and renewables.
Financially, ~₹4,600 crore (~USD 524-525 million) is invested in these four new projects, averaging ~₹1,150 crore per project. Employment estimates are ~2,034 skilled roles directly created, with broader ecosystem spill-overs in input supply, logistics, and supporting services. Compare this to prior large investments under ISM from players like TEPL-PSMC, Micron, and others, whose individual project sizes range into multiple thousands of crores and wafer/month capacities.
The market outlook supports this build-out: the domestic semiconductor end-demand is forecasted to grow from about USD 45-50 billion in 2024-25 to about USD 100-110 billion by 2030, driven by localization, favorable demographics, electronics demand, and public policy support. However, India still contributes very little to global front-end wafer fabrication (~0.1 %), equipment spending (~1 %), though holds ~6.5 % of global end-demand.
Strategically, these developments align India with geopolitical and industrial decoupling trends (“China +1”), and seek to strengthen import substitution in critical sectors. The SiC fab ties, for example with UK-based partners, suggest that technology transfer and capability building are integral to the policy design. Operational challenges such as technology readiness, yield, supply chain inputs (substrates, gases, equipment), skilled manpower, and scale-economics remain significant.
Open questions include timelines for commercial output and yields from SiC and advanced packaging units; the degree of domestic upstream supply (materials, chemicals); the business models for export vs. domestic markets; and how incentive schemes will impact cost structure and competitiveness versus global players.
Supporting Notes
- New projects worth ~₹4,600 crore approved under ISM for four companies: SiCSem, CDIL, 3D Glass Solutions, ASIP Technologies in Odisha, Punjab, Andhra Pradesh.
- Total investment under ISM with ten approved semiconductor units stands at ~₹1.60 lakh crore (≈ USD 18.23 billion).
- SiCSem’s facility to be India’s first commercial compound semiconductor (SiC) fab: 60,000 wafers/year; 96 million packaged units/year.
- 3D Glass Solutions unit to produce 69,600 glass panel substrates, 50 million assembled units, and 13,200 3DHI modules per annum.
- CDIL (Punjab) expanding discrete device manufacturing: 158.38 million units annually of MOSFETs, IGBTs, Schottky diodes, transistors (Silicon and Silicon Carbide used).
- ASIP Technologies (Andhra Pradesh), tied with South Korea’s APACT Co., to have an annual capacity of 96 million units for mobile, set-top boxes, automobile and other electronic devices.
- India’s semiconductor market size was estimated at USD 45–50 billion in 2024-25, rising from USD 38 billion in 2023, with a forecast to reach USD 100-110 billion by 2030.
- UBS report forecasting 15 % CAGR from 2025 to 2030, with end-demand revenue growing from USD 54 billion to USD 108 billion by 2030.
- ISM supported design infrastructure covering 278 academic institutions and 72 startups; also government schemes (PLI, SPECS) and foreign collaborations feature prominently.