The Indian government has approved four new semiconductor projects across three states with an estimated investment of INR 4,594 crore (USD 523 million). The projects will be located in Odisha, Punjab, and Andhra Pradesh, marking a significant expansion of India's semiconductor manufacturing capabilities.

Information and Broadcasting Minister Ashwini Vaishnaw announced the Cabinet decision during a media briefing in New Delhi on August 12, 2025. The decision was taken under the chairmanship of Prime Minister Narendra Modi.

Building Semiconductor Ecosystem

Minister Vaishnaw emphasized that the government is building a robust ecosystem for the semiconductor and electronics sector. The approval of these four projects represents part of the government's broader strategy to strengthen domestic semiconductor manufacturing capabilities.

The government is actively supporting domestic companies, startups, and MSMEs (Micro, Small, and Medium Enterprises) for chip design initiatives. This support structure aims to create a comprehensive foundation for semiconductor development across different business scales.

Electronics Manufacturing Growth

The electronics manufacturing sector has witnessed remarkable growth over the past 11 years, according to the minister's briefing. The industry has experienced six times growth during this period, while exports have increased by eight times. Mobile manufacturing has seen particularly dramatic expansion.

The number of mobile manufacturing units has grown from just 2 units to over 300 units in the last 11 years. This represents a 150-fold increase in manufacturing capacity. Mobile phone exports have demonstrated exceptional growth, increasing by 127 times to reach ₹2 lakh crore. This export performance highlights India's growing role as a significant player in global mobile phone manufacturing.

Semicon India 2025

The minister announced that Semicon India 2025 will be organized in New Delhi starting from the 2nd of next month. This event will serve as a platform for showcasing India's semiconductor capabilities and fostering international partnerships.

Four countries will participate in Semicon India 2025 as partners: Malaysia, Japan, Singapore, and South Korea. These partnerships indicate the international recognition of India's growing semiconductor sector and the collaborative approach being adopted for industry development.

Additional Infrastructure Projects

Beyond semiconductor projects, the Cabinet approved several other significant infrastructure initiatives. The Lucknow Metro Phase 1B project received approval with an estimated cost of over INR 5,801 crore. This metro line will connect Charbagh to Vasant Kunj and will include the construction of 12 stations, with completion expected within five years. The government also approved the Tato-II hydroelectric project with a capacity of 700 megawatts.

This project will be constructed in Shi Yomi district of Arunachal Pradesh and is scheduled for completion within six years. The project is expected to provide a stable source of electricity in the region and boost regional development. Minister Vaishnaw noted that India's fossil fuel capacity has reached over 50 percent, which he described as a great achievement in the country's energy sector development.

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