New Delhi: In a major boost to the growing electronics manufacturing sector in Andhra Pradesh, the Union Cabinet on Tuesday approved a semiconductor project for the state with an investment of Rs 468 crore.

The AP’s new project is a part of four new plants approved by the Union Cabinet with a cumulative investment of nearly Rs 4,600 crore under the India Semiconductor Mission (ISM). The projects are set to create over 2,000 skilled jobs across Andhra Pradesh, Odisha and Punjab.

The newly approved proposals are from SiCSem, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc., and Advanced System in Package (ASIP) Technologies. With these additions, the total number of approved projects under the ISM now stands at 10, with a combined investment of around Rs 1.60 lakh crore across six states. Advanced System in Package (ASIP) Technologies will establish a new semiconductor manufacturing unit in Andhra Pradesh.

This facility will have a technology partnership with South Korea's APACT Co and will produce up to 96 million chips annually. The products will be used in mobile phones, set-top boxes, automotive applications, and other electronics.

Two projects will be set up in Info Valley, Bhubaneshwar. SiCSem Private Limited is collaborating with the UK's Clas-SiC Wafer Fab Ltd. to build India's first commercial compound fab for Silicon Carbide (SiC)-based semiconductors. This facility will have an annual capacity of 60,000 wafers and 96 million packaged units, with applications in electric vehicles, defense, and solar power inverters. 3D Glass Solutions Inc. (3DGS) will establish a vertically integrated advanced packaging unit. This facility will bring state-of-the-art glass-based substrate technology to India, with applications in defense, high-performance computing, and automotive electronics.

Continental Device (CDIL) will expand its discrete semiconductor manufacturing facility in Mohali. This expansion will produce high-power discrete devices like MOSFETs and IGBTs, with an annual capacity of 158.38 million units. The devices will be used in automotive electronics, renewable energy, and industrial applications.

These new projects will significantly boost India's self-reliance in the semiconductor sector. They will also complement the country's growing chip design capabilities, which have been supported by the government's talent development programs benefiting over 60,000 students and numerous startups.