New Delhi/Bhubaneswar: Odisha Friday announced an additional 25 per cent fiscal support on capital expenditure for semiconductor projects aligned with the Centre’s newly-approved Semicon 2.0 programme, as Chief Minister Mohan Charan Majhi said the state has become the first in the country to extend policy support in the semiconductor supply chain, raw materials and equipment ecosystem.
Speaking to reporters in New Delhi at SEMICON India 2026, CM Majhi said the expanded support now covers semiconductor equipment manufacturing, semiconductor-grade chemicals, gases and materials and other supply chain segments.
“We will be providing an additional 25 per cent State fiscal support on eligible capital expenditure (Capex) for ISM-approved projects, including semiconductor equipment manufacturing, semiconductor-grade chemicals, gases and materials, and other semiconductor supply chain segments.
“Moreover, it will be a catalyst for developing a robust semiconductor and electronics manufacturing ecosystem in Odisha by promoting MSMEs, strengthening local supply chains, fostering industry-academia collaboration, and driving targeted skilling initiatives to build a future-ready workforce, creating a strong multiplier effect across the industrial ecosystem,” the Minister said.
The announcement follows the Union Cabinet’s approval in July 2026 of Semicon 2.0, a Rs 1,27,500 crore outlay for the development of India’s semiconductor design and manufacturing ecosystem. Odisha, Majhi said, is among the first states to align its own semiconductor policy with the Centre’s scheme.
The chief minister also announced a manufacturing milestone, saying RIR Power Electronics has completed the erection and installation of Silicon Carbide (SiC) Epitaxial Wafer Manufacturing Reactors at its facility in Bhubaneswar. He said the development marks a significant step in the company’s plan to set up India’s first vertically integrated SiC semiconductor production facility, with commercial production expected to begin soon.
On the state’s expanding investment pipeline, Majhi said discussions are underway to convert the Intel-3DGS memorandum of understanding (MoU) into a large-scale investment in advanced glass substrate and packaging.
Talks are also on with Sancode Technologies for a second-phase advanced packaging facility, while SiCSem is exploring a combined SiC and gallium nitride (GaN) fab and packaging unit under a Phase-II expansion and QuadQuantum is examining a raw material SiC wafers facility, he said.
Majhi said the state has approved a National Industry Co-Development Hub on Integrated Power Electronics at IIT Bhubaneswar, a Rs 452 crore project under the Indian Design, Semiconductors, Packaging and Systems (IDSPS) programme, to be jointly funded by the Ministry of Electronics and Information Technology (MeitY), the Odisha Government, the Anusandhan National Research Foundation (ANRF) and industry partners. He said the state is also developing its third IT park, spread over about 1,000 acres.
Odisha currently has five approved semiconductor manufacturing projects with a cumulative investment of Rs 10,899 crore, expected to generate over 4,500 direct and more than 16,000 indirect jobs, spanning SiC semiconductors, advanced packaging, glass substrate packaging, memory module assembly and power electronics, Majhi said.
Two of these – SiCSem Pvt Ltd’s integrated SiC fab and packaging facility and Heterogeneous Integration Packaging Solutions’ (HIPS/3DGS) advanced glass substrate packaging unit – are among the 12 projects approved nationally under the India Semiconductor Mission (ISM), which together represent investments of over Rs 1.64 lakh crore, he said.
Odisha’s overall semiconductor investment pipeline stands at USD 4.7 billion – USD 1.2 billion already committed and USD 3.5 billion upcoming. Majhi said the investments would pull an entire supply chain behind them in a cluster-based model of industrialisation, creating high-skilled jobs for the state’s youth so that “an engineer from Keonjhar, Rourkela or Berhampur will no longer have to work outside” the state.
“The State is not merely attracting individual projects but is systematically building a complete semiconductor ecosystem. Odisha is ready to work closely with global technology leaders, innovators, investors and entrepreneurs who wish to participate in building the future of technology in Viksit Odisha for a Viksit Bharat. We are not only investment-friendly but also technology-friendly,” he said.
PTI
