In recent weeks, India has accelerated its bid to become a global microelectronics manufacturing hub by approving a wave of new semiconductor fabrication (fab) and advanced packaging projects across multiple states. As part of the India Semiconductor Mission (ISM), the government announced on August 12 2025 that it had approved four additional semiconductor manufacturing units in Odisha, Punjab, and Andhra Pradesh—bringing the total number of sanctioned projects to ten, with a combined investment commitment of approximately INR 1.6 trillion (US $18.23 billion).
These new projects represent more than incremental capacity—they reflect a strategic pivot toward compound semiconductors, advanced packaging, and integrated manufacturing. In Odisha, for instance, one of the approved projects by SiCSem Private Limited, in partnership with the U.K.’s Clas‑SiC Wafer Fab Ltd., will establish the country’s first commercial silicon‑carbide (SiC) wafer fab with an annual capacity of 60,000 wafers and packaging capacity of 96 million units. Another project by 3D Glass Solutions Inc. will set up an advanced glass‑substrate package and embedded module facility—highlighting India’s push to architect complete microelectronics ecosystems rather than rely solely on legacy nodes.
The implications for microelectronics suppliers, component buyers, and system integrators are significant. First, this wave of approvals signals that India is moving rapidly from design ambitions to manufacturing reality. With the approval of India’s sixth semiconductor unit—a joint venture between HCL Group and Foxconn—near Jewar Airport in Uttar Pradesh (20,000 wafers/month capacity, 36 million display driver chips/year), India is sending a clear message about its intent to play a meaningful role in global chip supply chains.
For component sourcing, this means the following actionable trends:
Anticipate rising demand for mature and specialty nodes (e.g., display drivers, IoT chips, SiC devices) coming out of India’s ramp‑up.
Consider diversifying sourcing strategies to include Indian‑based supply, especially for packaging and testing services, as these ecosystem layers invest heavily.
Monitor lead‑times and capacity commitments for these Indian fabs—earlier entry or relationships may secure preferred access in a region rapidly scaling.
Be aware of potential supply‑chain shifts: as India promotes domestic sourcing and localization, global component flows may alter, influencing alliances, geo‑logistics, and cost structures.
From a geopolitical perspective, India’s acceleration matters because it offers a new node of supply‑chain resilience outside East Asia. The emphasis on heterogenous integration, SiC/compound semiconductors, and packaging infrastructure indicates that India isn’t simply chasing legacy volume but aiming for differentiated capabilities aligned with EVs, AI, telecom and defence systems. For microelectronics ecosystem players, aligning with India’s trajectory now could yield competitive advantages.
India’s approval of ten significant semiconductor projects signals a material shift in the microelectronics landscape. This is more than regional expansion—it is a strategic move into capabilities that matter for next‑generation electronics. Staying attuned to how these projects progress, and positioning sourcing, partnerships and design pipelines accordingly, will be critical for companies operating in microcomponents and systems over the decade ahead.