Union Cabinet Clears ₹4,594 Crore for Semiconductor Projects

Speedy Summary

• The Union Cabinet, led by Union Minister Ashwini Vaishnaw, has approved four semiconductor projects worth ₹4,594 crore.
• These projects will be established in Odisha (two plants),Punjab,and Andhra Pradesh.
• previously approved six semiconductor projects have a capacity of producing 24 billion chips annually.
• One plant in Bhubaneswar will manufacture silicon carbide with advanced research facilities involving IIT Bhubaneswar. Silicon carbide production involves precision processes like vaporizing powder at 2,400 degrees and crystal accretion to create wafers.
• A 3D Glass factory in Odisha will leverage technology used across industries such as defense and aerospace. Intel has invested in this unit alongside other major companies like Lockheed martin and venture capital funds.
• In Punjab, Continental Device India Pvt Ltd (CDIL) is collaborating with a Korean firm to produce devices like MOSFETs (semiconductor components).
• Advanced System in Package Technologies Pvt ltd (ASIP) is setting up the fourth plant in Andhra Pradesh.

Indian Opinion Analysis

The approval of these semiconductor projects signals India’s intent to emerge as a notable player in the global chip manufacturing ecosystem. Semiconductors are critical for technological advancement across industries such as defense, aerospace, communication systems, and computing-the backbone of modern economies. The focus on strategically developing cutting-edge technologies like silicon carbide production demonstrates foresight towards addressing future needs for more durable materials suitable for extreme conditions.

Moreover, partnerships between Indian entities (e.g., CDIL) and international firms represent an possibility for technology sharing that could strengthen domestic expertise while attracting foreign investment. Investments from major players like Intel reaffirm global confidence in India’s potential within this sector.However significant this step is for self-reliance (Atmanirbhar Bharat), success hinges on scalability-aligning infrastructure progress with market demand while fostering long-term research capabilities facilitated by institutions like IIT Bhubaneswar mentioned here. It highlights India’s ambition yet also reinforces the need for multilateral collaboration to achieve sustained growth within this complex industry.

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