Indian states look beyond incentives to drive semicon mission
Officials from the four states outlined these measures at a panel discussion at Semicon India 2026, highlighting how states are trying to remove infrastructure and approval bottlenecks as semiconductor projects move towards manufacturing.
Indian states are moving away from merely offering incentives to attract semiconductor companies and are instead focusing on creating a streamlined environment for their establishment. During a panel discussion at Semicon India 2026, officials from four states - Gujarat, Assam, Odisha, and Karnataka - revealed measures aimed at removing infrastructure and approval bottlenecks.
Assam plans to leverage the existing Tata Electronics semiconductor assembly facility for further development. Additional Chief Secretary J.B. Ekka announced that production is expected to commence in Assam in November or December from Tata's OSAT facility. The state has already allocated land and implemented weekly monitoring of the project, with reviews conducted by the chief secretary and chief minister. Assam is also identifying land for other semiconductor companies and developing a plug-and-play industrial park.
Gujarat has already secured six out of the 12 projects under the first phase of the India Semiconductor Mission. The state has established a dedicated mechanism to assist companies in navigating approvals and coordinating across departments. P. Bharti, secretary of the Department of Science and Technology, cited the creation of the Gujarat Semiconductor Electronics Mission as evidence of their institutional mechanisms.
Infrastructure remains a priority for the states, with Odisha boasting surplus power and water resources, three major seaports, and an industrial power cost of Rs 4.50 per unit. Additional Chief Secretary Vishal Kumar Dev highlighted that Odisha provides power to the national grid and has announced a 1,000-acre technology park for semiconductor, data centre, and IT services companies.
Karnataka is relying on its established industrial ecosystem and a single-window approval system to expedite the process for semiconductor companies. Avinash Menon Rajendran, director of the Department of Electronics and Information Technology, explained that investors can approach one centralized body to facilitate and coordinate with all relevant departments for clearance.
To address the talent gap, Gujarat is collaborating with IIT Gandhinagar, the Centre for Development of Advanced Computing (C-DAC), and other institutions to train engineers, graduates, and diploma holders in semiconductor manufacturing and other value chain sectors. Assam has also set up a center of excellence at IIT Guwahati in partnership with Tata Semiconductor to develop relevant courses.
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