On August 12, 2025, India’s Union Cabinet approved the setup of four new semiconductor manufacturing plants with a combined investment of ₹4,594 crore. Two factories will be located in Odisha, while Andhra Pradesh and Punjab will each host one plant
This move underscores the government’s intensified efforts to develop a robust, domestic semiconductor manufacturing ecosystem and reduce reliance on imports.The Economic Times
Why It Matters
- Strategic Expansion: Broadens India’s chip manufacturing footprint beyond existing hubs in Gujarat, Assam, and soon UP, increasing regional integration and resilience in the supply chain.
- Economic Impetus: Attracts investments, drives infrastructure development, and generates employment in emerging tech corridors.
- Global Chip Race: Positions India more competitively in the international semiconductor landscape at a crucial time.
What’s Next
- Expect detailed rollout plans, including project timelines, incentives, and partner disclosures.
- These new plants will likely align with the broader India Semiconductor Mission, which supports end-to-end chip production—from design to packaging.
- They join earlier approvals such as the HCL-Foxconn plant near Jewar and Tata Electronics’ projects, creating a rapidly growing semicon network.
