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Union Cabinet Approves Four New Semiconductor Units in Punjab, Odisha, and Andhra Pradesh with ₹4,600 Crore Investment.

National | Dated: 14 Aug 2025

On August 12, 2025, the Union Cabinet of India approved the establishment of four new semiconductor manufacturing units across the states of Punjab, Odisha, and Andhra Pradesh. This strategic move, under the India Semiconductor Mission (ISM), represents a significant investment of approximately ₹4,600 crore and aims to bolster India's self-reliance in semiconductor production.

🎯 Key Highlights:

  • - The approved projects include two semiconductor units in Odisha and one each in Andhra Pradesh and Punjab. These facilities are expected to generate employment for over 2,000 skilled professionals, contributing to regional economic development and technological advancement.
  • - One of the projects has garnered support from global industry leaders, including U.S. chipmaker Intel and aerospace and defense company Lockheed Martin. These collaborations are anticipated to bring advanced manufacturing technologies and expertise to India, enhancing the country's capabilities in semiconductor production.
  • - The establishment of these units aligns with the objectives of the India Semiconductor Mission, which aims to position India as a global hub for semiconductor manufacturing and design. The ISM focuses on reducing dependency on foreign semiconductor imports and promoting domestic production capabilities.

💡 Other Important Facts:

  • (i) With the addition of these four units, the total number of approved semiconductor projects in India has reached ten, with a cumulative investment of approximately ₹1.6 lakh crore. This expansion underscores India's commitment to developing a robust semiconductor ecosystem and reducing reliance on external sources for critical electronic components.
  • (ii) The government's proactive approach includes offering incentives and creating a conducive environment for semiconductor manufacturing. This includes support for research and development, infrastructure development, and fostering collaborations between industry and academia to build a skilled workforce.
  • (iii) India’s strategic push in semiconductor manufacturing is expected to enhance its position in the global electronics supply chain. With significant investments and international partnerships, India aims to emerge as a key player in the global semiconductor market, contributing to technological advancements, economic growth, and self-reliance in critical electronic components.

📚 Test Your Knowledge:

Recently, the Union Cabinet approved the establishment of four new semiconductor units in Punjab, Odisha, and Andhra Pradesh with a total investment of:

Correct Answer: ₹4,600 crore

🚀 Quick Recap:

About Punjab

  • Capital: Chandigarh
  • Chief minister: Bhagwant Mann