Cabinet approves two semiconductor manufacturing units with ₹3900 crore investment
The approved projects include a display driver chip manufacturing facility in Uttar Pradesh and an advanced electronics components unit in Karnataka, both aimed at strengthening India’s growing electronics manufacturing value
The semiconductor ecosystem has emerged as one of India’s top strategic priorities amid rising global demand for chips powering smartphones, electric vehicles, data centres, telecom equipment, AI systems and industrial electronics.
New Delhi: The Union Cabinet has approved two new semiconductor and electronics component manufacturing units with a combined investment of more than ₹3,900 crore, further accelerating India’s efforts to build a self-reliant semiconductor ecosystem and reduce dependence on imports.
The approved projects include a display driver chip manufacturing facility in Uttar Pradesh and an advanced electronics components unit in Karnataka, both aimed at strengthening India’s growing electronics manufacturing value chain.
The decision comes amid the government’s aggressive push to position India as a global semiconductor and electronics manufacturing hub under the India Semiconductor Mission and Production Linked Incentive (PLI) schemes.
According to official sources, the projects are expected to generate significant employment opportunities while enhancing domestic manufacturing capabilities in critical semiconductor and electronic component segments.
The semiconductor ecosystem has emerged as one of India’s top strategic priorities amid rising global demand for chips powering smartphones, electric vehicles, data centres, telecom equipment, AI systems and industrial electronics.
Over the past few years, the Centre has approved multiple semiconductor fabrication, packaging and component manufacturing projects as part of a broader strategy to develop an end-to-end chip manufacturing ecosystem in the country.
Industry experts believe India’s semiconductor ambitions are now moving beyond assembly operations towards advanced packaging, component manufacturing and eventually fabrication capabilities.
The newly approved units are expected to support domestic electronics manufacturing companies by improving local availability of critical semiconductor and display components, reducing supply chain vulnerabilities and import dependency.
Government officials said the projects would also contribute to attracting ancillary industries, technology partnerships and high-value investments in the electronics sector.
India’s electronics manufacturing sector has witnessed rapid growth over the last decade, with mobile phones emerging as one of the country’s leading export categories.
The Centre has been positioning semiconductor manufacturing as both an economic and strategic imperative, especially in the context of global supply chain disruptions and geopolitical competition surrounding chip technologies.
With the latest approvals, India continues to deepen its semiconductor manufacturing pipeline alongside ongoing investments in chip packaging, OSAT facilities, electronics manufacturing clusters and semiconductor design ecosystems.
