India ISM Phase 1: Union Cabinet Approves Four Semiconductor Units — SiCSem, 3D Glass Solutions, CDIL, ASIP — INR 4,600 crore

Mechanism

The Union Cabinet approved four additional manufacturing units under ISM Phase 1 on 12 August 2025, continuing the rollout of the INR 76,000 crore Semicon India Programme (filed at 2021-12-15-india-semiconductor-mission-pli).

SiCSem Private Limited — Odisha

SiCSem is collaborating with Clas-SiC Wafer Fab Ltd. (UK) to build an integrated Silicon Carbide (SiC) compound-semiconductor facility at Info Valley, Bhubaneswar — India's first commercial compound fab. Planned annual capacity: 60,000 wafers and 96 million packaged units. Target applications: missiles, defence equipment, EVs, railways, fast chargers, data-centre racks, consumer appliances, and solar inverters.

3D Glass Solutions Inc. — Odisha

3DGS will build a vertically integrated advanced-packaging and embedded glass-substrate unit at Info Valley, Bhubaneswar, bringing glass-interposer and 3D Heterogeneous Integration (3DHI) packaging technology to India. Planned capacity: ~69,600 glass panel substrates, 50 million assembled units, and 13,200 3DHI modules per annum. Target applications include defence, high-performance computing, AI, RF, automotive, and co-packaged optics.

Advanced System in Package Technologies (ASIP) — Andhra Pradesh

ASIP will build a semiconductor manufacturing (OSAT) unit under a technology tie-up with South Korea's APACT Co. Ltd, with annual capacity of 96 million units for mobile phones, set-top boxes, and automotive electronics.

Continental Device India Private Limited (CDIL) — Punjab

CDIL will expand its existing discrete-semiconductor facility at Mohali to manufacture high-power MOSFETs, IGBTs, Schottky diodes, and transistors in both Silicon and Silicon Carbide, with annual capacity of ~158.38 million units, serving automotive/EV, renewable-energy, and industrial-power applications.

Downstream implications

• Brings total approved ISM Phase 1 projects to 10 across 6 Indian states,

with cumulative committed investment of ~INR 1.60 lakh crore (~USD 18bn) — the same cumulative baseline referenced in the later 2026-05-05-india-ism-crystal-matrix-suchi-semicon-cabinet-approval action (12th/final Phase 1 batch), confirming this Aug-2025 tranche as the intermediate step between ISM's initial fab/ATMP cohort and Phase 1 closure.

• First entry of Silicon Carbide compound-semiconductor fabrication into

the ISM portfolio (SiCSem), diversifying beyond the silicon-CMOS/ATMP concentration of earlier approvals (Tata/PSMC, Micron, CG Power-Renesas, Kaynes) — relevant to EV power-electronics and defence supply chains seeking non-China SiC sourcing.

• Advanced glass-substrate packaging (3D Glass Solutions) is a nascent,

US-origin technology transfer being localised in India ahead of most Western fabs' own commercial deployment — an early-mover position in a packaging layer relevant to AI/HPC chip supply chains.

• Cross-border technology tie-ups (UK's Clas-SiC for SiCSem, South Korea's

APACT for ASIP) extend ISM's foreign-partner model beyond the US-centric Micron/Applied Materials relationships in earlier tranches.

Open questions

• Timeline from Cabinet approval to ground-breaking/commercial output —

prior ISM approvals show 12-24 month gaps between approval and construction start; monitor MeitY Tripartite Agreement signings for SiCSem, 3DGS, CDIL, and ASIP.

• Whether SiCSem's Clas-SiC partnership signals a broader UK-India

semiconductor supply-chain track distinct from the dominant US/Japan/ Taiwan technology-transfer pattern seen elsewhere in ISM.

• Whether ISM 2.0 (filed 2026-02-01-india-semiconductor-mission-2-0) folds

further SiC/compound-semiconductor and advanced-packaging capacity into its equipment/materials priority, building on this tranche's precedent.