India has taken a decisive step toward reshaping the global semiconductor landscape. The government has approved the country’s first commercial compound semiconductor wafer fab, a project that could shift India’s role from a chip design hub to a serious manufacturing contender.

The facility will rise in Bhubaneswar’s Info Valley through a partnership between India’s SiCSem and UK-based Clas-SiC. Once operational, it will deliver around 60,000 wafers and 96 million devices annually, aimed at powering electric vehicles, defense systems, renewable energy solutions, and high-speed communications. Unlike traditional silicon, silicon carbide (SiC) can withstand higher voltages and temperatures, making it indispensable for next-generation industries.

This move is not just about one fab. Alongside, the government has cleared a glass substrate and advanced packaging plant worth INR 19.43 billion, strengthening India’s position in 3D heterogeneous integration-an area critical for AI accelerators, photonics, and RF communication. Together, these approvals push ISM-linked investments past USD 19.2 billion, underlining India’s intent to become a trusted alternative in global supply chains.

As the world looks for options beyond China and Taiwan, India offers political stability, a growing domestic market, and skilled talent. If execution matches ambition, Bhubaneswar could emerge as the heart of India’s semiconductor story, powering tomorrow’s EVs, AI systems, and defense technologies with chips proudly made in India.