Odisha is rapidly progressing as a significant player in India’s semiconductor landscape, backed by strategic policies and major investment proposals. The state’s efforts are part of a broader national push to develop a robust and sustainable semiconductor ecosystem. And it was attested by presenting two semiconductor chips developed by NIT, Rourkela, and one by PMEC, Berhampur, to the Prime Minister Narendra Modi on the occasion of the International Conference called Semicon India 2025 held in New Delhi on September 2.
These are the first semiconductor chips produced in India as a part of ‘Made in India’ campaign and Purvoday Vikash initiative of the Prime Minister. This remarkable innovation highlights the growing importance of Odisha in the semiconductor industry in India. Added to this the Union Government has sanctioned setting up of two semiconductor manufacturing plants in the state.
Odisha has therefore reasons to be proud of this emerging new eco system in the state.
Major Investment Proposals
The Union Cabinet has approved two significant semiconductor manufacturing projects for Odisha, with a combined investment of over $4,000 crore. Both are to be set up in Bhubaneswar’s Info Valley.
SiCSem Private Limited in collaboration with the UK’s Clas-SiC Wafer Fab Ltd., will establish India’s first commercial compound semiconductor fabrication unit. The facility will produce Silicon Carbide (SiC) devices, which are crucial for high performance applications like electric vehicles, defence systems, and telecommunications. The plant will have an annual capacity of 60,000 wafers and 96 million packaged units. Similarly,3D Glass Solutions Inc.
The second project, by US-headquartered 3D Glass Solutions Inc (3DGS), will introduce advanced semiconductor packaging technology to India. The facility will manufacture next-generation components, including glass interposers and 3D heterogeneous integration (3DHI) modules, which are essential for high-performance computing and other advanced electronics.
Besides, the state has also approved fiscal assistance for RIR Power Electronics’ Silicon Carbide semiconductor manufacturing project in Bhubaneswar. This facility is also a significant step towards manufacturing high-voltage SiC components in India.
Policy and Ecosystem Development
It is significant to note that Odisha Semiconductor Manufacturing and Fabless Policy, 2025 has been announced by the state government. This is a dedicated policy to attract semiconductor investments in the state. This policy offers incentives beyond those provided by the central government, including Additional capital subsidies (25% for the first 10 large-scale projects and 10% for subsequent ones), land allocation, rental assistance, and exemptions on electricity duty for a period of 10 years.
The state is also focusing on building a skilled workforce to support the industry. Plans are underway to expand the World Skill Centre in Bhubaneswar and establish new campuses focused on IT, semiconductors, and other engineering fields. A Centre of Excellence (CoE) in Semiconductors is planned at the International Institute of Information Technology (IIIT), Bhubaneswar, to promote research and development. Local institutions are already contributing to the national effort.
As mentioned earlier, NIT Rourkela and Parala Maharaja Engineering College (PMEC) in Berhampur have successfully developed and presented “Made in India” semiconductor chips, showcasing the state’s talent and innovation.
The Odisha government is positioning the state as a future global hub for semiconductor and electronics innovation, aligning with state’s “Vision 2036 and 2047.” This involves planning dedicated ESDM (Electronics System Design and Manufacturing) and semiconductor clusters in districts like Khurda and Ganjam, with support from R&D institutions and specialized training programmes.
Odisha’s participation in major events like SEMICON India 2025 further highlights its commitment to attracting global attention and investments for the state.
Semiconductor industry is in a nascent state in India and there’s huge potential for Odisha to be the role model in the country. It’s assuring to see the Union Government is extending support and attention to the state in this direction. If the present momentum is maintained, Odisha will lead the country in this field within the next ten years.