Cabinet approves Semiconductor unit for Punjab, Odisha and  Andhra Pradesh

August 13, 2025

New Delhi: In a major push to strengthen India’s semiconductor manufacturing ecosystem, the Union Cabinet on Wednesday approved the establishment of four semiconductor fabrication and assembly facilities in three states — two in Odisha, and one each in Andhra Pradesh and Punjab.

The Odisha units will be set up in Ganjam and Khurda districts, with a combined investment of over ₹90,000 crore. These plants will focus on advanced semiconductor packaging, testing, and manufacturing of chips used in consumer electronics, automobiles, and telecommunications.

PM Modi (@narendramodi) posts, “India is making rapid strides in the semiconductor sector, building a robust ecosystem to power our digital future and drive global innovation. Today’s Cabinet decision relating to approval of semiconductor units in Andhra Pradesh, Odisha and… pic.twitter.com/XCXgH8Shti

— Press Trust of India (@PTI_News) August 12, 2025

In Andhra Pradesh, the approved facility in Tirupati will be developed with an estimated investment of ₹35,000 crore. The project aims to create a high-tech semiconductor manufacturing hub in southern India, leveraging the state’s existing electronics and hardware ecosystem.

Punjab’s plant, to be located in Mohali, will receive an investment of around ₹26,000 crore. The facility will focus on specialised semiconductor production for industrial and defence applications, tapping into the region’s skilled engineering workforce.

Officials said the projects are expected to collectively generate over 30,000 direct jobs and more than 1 lakh indirect employment opportunities, while significantly reducing India’s dependence on imported semiconductors. India currently imports nearly all its semiconductor requirements, with the global market dominated by countries like Taiwan, South Korea, and the US.

The Cabinet’s decision is part of the ₹76,000 crore Semicon India Programme launched in 2021 to attract investments in semiconductor and display manufacturing. The initiative aims to position India as a key player in the global semiconductor supply chain amid rising geopolitical tensions and growing demand for electronics.

Industry experts welcomed the move, noting that the projects could help address global chip shortages, boost exports, and enable India to compete in high-value electronics manufacturing. Construction of the approved facilities is expected to begin later this year, with production targeted between 2027 and 2028.