India’s ambitions in the global semiconductor arena have reached a critical juncture, as the government’s recent approval of four new chipmaking projects signals a bold new era for the country’s technology sector. On August 19, 2025, the Union Cabinet gave the green light to investments worth nearly Rs 4,600 crore, a move hailed by industry leaders as a “giant leap forward” that could finally reduce India’s longstanding dependence on imported chips and strengthen its standing in the global supply chain.
For decades, India’s semiconductor journey has been marked by promise and setbacks, none more dramatic than the 1989 fire at the Semiconductor Complex Limited (SCL) in Mohali. The blaze, which caused losses of Rs 75 crore and destroyed the facility’s main production line, derailed India’s early ambitions to rival global chipmakers. According to India Today, SCL had been manufacturing 5000-nanometre chips and was just one generation behind world standards at the time—a remarkable feat for a state-owned enterprise established in 1976. Yet, the fire’s cause was never officially determined, with some theories pointing to sabotage due to evidence of multiple ignition points. The facility languished for nearly a decade, and by the time it resumed operations in 1997, the world had raced ahead technologically.
Despite these setbacks, India’s determination to build a robust domestic chip industry never waned. In 2022, the government launched the India Semiconductor Mission, backed by a massive Rs 76,000 crore outlay, to jumpstart indigenous chip production. By August 2025, ten projects totaling Rs 1.60 lakh crore in investments had been approved across six states. The latest Cabinet decision, however, stands out for its strategic scope and the diversity of technologies being pursued.
“These approvals represent a giant leap forward in India’s semiconductor journey,” said Sasikumar Gendham, President of the Electronic Industries Association of India (ELCINA), as reported by The Economic Times. “For the first time, we will see commercial production of compound semiconductors and advanced glass substrate packaging on Indian soil, reducing critical import dependencies. This will not only ease pressure on our electronics trade balance but also provide the backbone for strategic sectors like defence, EVs and renewable energy.”
The four projects span three states and introduce new technological frontiers for India. In Andhra Pradesh, ASIP Technologies—backed by South Korea’s APACT Co. Ltd—will establish a system-in-package (SiP) unit targeting mobile, automotive, and consumer electronics. Odisha is poised to become a hotspot for next-generation semiconductors, with SiCSem Pvt. Ltd collaborating with the UK’s Clas-SiC Wafer Fab to build India’s first silicon carbide (SiC) fabrication plant. This facility, planned to have an annual capacity of 60,000 wafers and 96 million packaged units, is expected to serve high-growth markets such as EV charging and high-performance computing.
Adding to Odisha’s credentials, US-based 3D Glass Solutions is set to build an advanced packaging facility featuring cutting-edge technologies like glass interposers and 3D heterogeneous integration (3DHI). Meanwhile, in Punjab, Continental Device India Ltd (CDIL) will expand its discrete semiconductor production, focusing on devices like MOSFETs, IGBTs, and Schottky diodes—components critical for electric vehicles, renewable energy, and telecommunications.
The impact of these projects extends well beyond the immediate promise of over 2,000 direct jobs and countless indirect opportunities. As Rajoo Goel, Secretary General of ELCINA, told The Economic Times, “The Cabinet’s decision will accelerate the diversification and deepening of India’s semiconductor capabilities. Beyond silicon, the entry into SiC devices, advanced interposers and high-power discretes expands opportunities in EVs, defence, telecom and renewable energy. This is exactly the direction the industry has been advocating—to tap niches where India can leapfrog rather than play catch-up.”
Goel further emphasized the importance of talent development. “Already over 60,000 students have been trained under ISM’s talent programmes, and we expect this number to grow rapidly, as these projects are near commissioning. Without the human capital, infrastructure alone cannot deliver results. ELCINA’s role will be to ensure that the skills pipeline, policy stability and industry partnerships align to make these projects succeed over the long term.”
India’s chip ambitions are not just about manufacturing but about carving out specialized niches in the global supply chain. Instead of competing head-to-head with entrenched silicon fabs in Taiwan and Korea, India is positioning itself in areas like compound semiconductors and advanced packaging, where it can leapfrog existing players. This approach is directly linked to the country’s stated target of $500 billion in electronics production by 2030.
According to The Economic Times, these projects are transformative not just for the companies or the states involved, “but for India’s global positioning.” Goel added, “If executed well, they will send a strong signal to the world that India is ready to move from being a design powerhouse to becoming a serious manufacturing hub.”
This renewed momentum comes at a critical time. In 2024, India’s semiconductor imports soared to $20 billion, growing at an 18% annual clip. Chips now power everything from smartphones to moon missions and cruise missiles, making supply chain resilience a matter of national security. The government’s push to boost indigenous chip production is, in part, a response to these vulnerabilities—as well as a bid to capture a share of the booming global electronics market.
Meanwhile, Indian industry is looking to secure its supply chains for the long haul. Tata Electronics, one of the country’s leading electronics firms, is currently in talks with German chemicals giant Merck to secure an exclusive, long-term supply agreement for high-purity materials essential to chipmaking. According to The Economic Times, these discussions underscore the broader context of India’s semiconductor push and the need for reliable access to critical raw materials.
It’s hard not to reflect on the long road that brought India to this point. After the SCL fire, the country’s chipmaking ambitions languished for years, hampered by bureaucratic delays and shifting priorities. SCL itself was restructured as a research and development center in 2006 and now, under the Ministry of Electronics and Information Technology, produces 180-nm chips solely for defence and strategic applications. Meanwhile, global leaders like Taiwan’s TSMC have advanced to 3-nm and even 2-nm chips, underscoring the technological gap India aims to close.
Yet, there are signs of a genuine turnaround. On August 15, 2025, Prime Minister Narendra Modi announced that India would produce its first semiconductor chip by the end of the year—a symbolic milestone that, if achieved, would mark the rebirth of a dream nearly lost to the flames in Mohali decades ago.
As India prepares to commission its new chipmaking projects, the stakes couldn’t be higher. Success would mean not just economic gains and job creation, but a new era of technological self-reliance and global competitiveness. For a country long reliant on imported chips, the prospect of finally joining the ranks of the world’s semiconductor producers is both a vindication of past efforts and a challenge for the future.
